Juul Labs Cuts Its Internal Valuation By 35% To $13 Billion
The company had valued itself at $20 billion as of January
Juul Labs Inc. slashed its internal valuation by 35% to roughly $13 billion, days after the e-cigarette maker outlined plans to cut about a third of its workforce.
The reduction brings Juul roughly in line with one of its largest investors, the tobacco giant Altria Group Inc., which bought a 35% stake in Juul in 2018 and has since marked its holdings down to a level that implies a valuation of about $12 billion. Juul Chief Executive Officer K.C. Crosthwaite described the results of the company’s quarterly evaluation in an internal email to employees reviewed by Bloomberg News.
The company had valued itself at $20 billion as of January.
In his email Friday, Crosthwaite attributed the lower valuation to volatility in public markets and new financial projections in the U.S. and overseas. Crosthwaite on Tuesday announced Juul will stop doing business in South Korea and will explore its options in Austria, Belgium, France, Portugal and Spain after concluding those markets aren’t sustainable.
The company also said this week that it would eliminate another 900 positions after cutting 650 jobs last fall.
“These steps are necessary to put Juul Labs on a sustainable pathway — one that we believe will ultimately allow us to invest and grow for the future and create value for all of our shareholders,” Crosthwaite said in his email Friday.
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