Juul Labs Inc. has secured a cash infusion from some of its early investors to stave off bankruptcy and plans to lay off about a third of its global staff, company officials said.
The embattled e-cigarette maker had been preparing for a possible chapter 11 filing amid a dispute with federal regulators over whether its products can remain on the U.S. market.
With the new infusion, Juul told employees Thursday that it has stopped its bankruptcy preparations and is working on a cost-cutting program. Juul plans to lay off about 400 people and reduce its operating budget by 30% to 40%, company officials said.
The investment deal is the first piece of a bailout package under discussion with two of Juul’s biggest investors, Hyatt Hotels
H,
heir Nick Pritzker and California investor Riaz Valani. The Journal previously reported that Juul was in discussions with the two longtime board members on a lifeline for the company.
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