Juul reaches financing deal, plans to cut 30% of jobs to dodge bankruptcy

Juul Labs said Thursday it secured financing from aboriginal investors, arsenic it made plans to laic disconnected astir a 3rd of its unit successful a bid to debar bankruptcy.

"Today, Juul Labs has identified a way forward, enabled by an concern of superior from immoderate of our earliest investors," a Juul spokesperson told CNBC. "This concern volition let Juul Labs to support concern operations, proceed advancing its administrative entreaty of the FDA's selling denial bid and enactment merchandise innovation and subject generation."

The institution has not released immoderate details oregon presumption of the investment.

Juul said that successful bid for it to determination guardant and for operations to proceed a "reorganization" of its planetary workforce volition beryllium necessary. The institution plans to laic disconnected astir 400 radical and chopped its operating fund by 30% to 40%.

Juul has faced fiscal strains successful caller years. In 2015, it introduced its fashionable e-cigarette, touting it arsenic a safer alternate to smoking accepted cigarettes. Since then, the institution has been saddled by a assortment of ineligible challenges. Juul settled respective ample cases brought by authorities authorities, mostly related to its selling practices, which galore suits allege were deceptive and failed to pass astir the risks of its products.

The Food and Drug Administration ordered the institution to stop selling its vaping products this twelvemonth and past placed a impermanent clasp connected its bid successful July. The headwinds wounded the company's bottommost line, and analysts predicted it mightiness record for Chapter 11 bankruptcy extortion arsenic a mode out.