Juul Staves Off Bankruptcy With Fresh Cash, But Plans to Cut About 400 Jobs
- E-cigarette maker shelved bankruptcy plan after inking deal
- Juul also plans to cut around 400 jobs, slash operating budget
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Juul Labs Inc. is getting a financial lifeline from two longtime shareholders and is no longer preparing to file for bankruptcy, but plans to cut around 400 jobs as part of a reorganization, according to a person with knowledge of the situation.
Nick Pritzker, the Hyatt Hotels heir and founder of Tao Capital Partners LLC, and Riaz Valani, a partner at Global Asset Capital LLC, have agreed to inject cash into the troubled e-cigarette company, according to the person, who asked not to be identified because the matter is private. The job cuts are part of a plan to slash Juul’s operating budget by 30% to 40%, the person said.