WASHINGTON _ Juul Labs CEO Kevin Burns is stepping down amid reports of a mysterious vaping-related lung illness and scrutiny from state and federal officials.
Burns will be replaced K.C. Crosthwaite, an executive from Altria Group Inc., a tobacco giant whose brands include Marlboro and Parliament, the dominant e-cigarette maker announced Wednesday. Altria bought a 35% stake in Juul in December for nearly $13 billion.
On Tuesday, California health officials issued a warning that people stop vaping immediately. Earlier this month, the Trump administration proposed a ban on flavored e-cigarettes to crack down on what it has called an "epidemic of nicotine addiction" among young people.
"I have long believed in a future where adult smokers overwhelmingly choose alternative products like JUUL," Crosthwaite said in a statement. "Unfortunately, today that future is at risk due to unacceptable levels of youth usage and eroding public confidence in our industry."
Crosthwaite added the company should "strive to work with regulators, policymakers and other stakeholders" to earn trust by "inviting an open dialogue, listening to others and being responsive to their concerns."
The management shakeup also comes after reports that the company was planning to restructure its workforce.
