E-cigarette producer Juul Labs has said in a statement that it has managed to secure financing to avoid bankruptcy although job cuts would need to be made, reports AFP.

Juul has secured an investment in order to avoid a bankruptcy filing and is undertaking a restructuring of its business which will include cutting its operation budget by around 40 per cent and job cuts thought to affect around 400 employees
“Today, Juul Labs has identified a path forward, enabled by an investment of capital from some of our earliest investors,” a Juul spokesperson told AFP in a statement. The statement went on to say that the investment will help Juul to maintain business operations and “continue advancing its administrative appeal of the FDA’s marketing denial order,” among other needs, according to AFP. The reorganization of company would include “the difficult but necessary step of separating from many valued colleagues,” the spokesperson said.
Staff have been notified about the new developments.