Layoffs at e-cigarette maker Juul led to layoffs at its Hudson, Wisconsin plant. The Phillips-Medisize plant in Hudson, Wisconsin, was in hiring mode and was forced to lay off workers last month as work slowed at e-cigarette maker Juul Labs.

The U.S. Food and Drug Administration's June decision on e-cigarettes led to layoffs at operations at Phillips-Medisize, a Hudson, Wisconsin-based medical device maker.

The company notified Wisconsin in July that it would lay off 96 employees at its St. Croix Meadows plant in Hudson.

In its letter to the state, Phillips-Medisize said: “Recently, a major Phillips customer notified the company that it would need to immediately and significantly reduce production at its St. Croix Meadows Phillips facility.

A Juul Labs spokesperson confirmed that this is the company mentioned in the letter. The Washington, D.C.-based company previously admitted that it had a contract with Phillips-Medisize to manufacture e-cigarette components.

In June, the FDA ordered Juul to stop selling its e-cigarettes in the United States.

A Juul spokesman said: "The FDA's initial decision in June to deny a marketing order to the company created a level of uncertainty that ultimately affected work at partner facilities.

Phillips-Medisize's Worker Adjustment and Retraining Notice (WARN) letter to the state indicates that layoffs will begin on or around July 12.

Phillips-Medisize said in a statement that the 64 affected employees remain in other roles at the company. All laid-off employees were offered jobs on different shifts or locations.

According to the company's statement, the company provides our employees with direct support, including severance pay and the opportunity to apply for positions in other Wisconsin locations, including New Richmond and Menomonie.

Phillips-Medisize has approximately 2,300 employees at multiple Wisconsin locations. About 200 people work on the Hudson site.

The company's warning letter indicated that an additional 225 jobs could be cut if our customers notified us that we needed to stop production altogether. Phillips-Medisize manufactures electronic cigarette device components at three locations.

The once-hot e-cigarette start-up industry has been tempered by regulators in recent years. Juul cut about 75% of its workforce from late 2019 to late 2020.

In July, the FDA suspended Juul's ban while the company appealed the decision.

“Juul Labs believes that once the FDA completes its full review of all the science and evidence presented — as required by law and without political pressure — companies should be authorized to sell their products,” a Juul spokesperson said.

Phillips-Medisize's primary business is the manufacture of drug delivery, medical devices and diagnostic products. It also manufactures products for the automotive, consumer and defense markets.

Phillips-Medisize completed a $63 million expansion in Hudson in 2020, creating a new 285,000-square-foot state-of-the-art building. When it opened, the company hoped to employ 250 workers there.

Representatives for the City of Hudson did not return calls for comment.

Founded in Phillips, Wisconsin in the 1960s, Phillips-Medisize is now a global business with numerous locations in Europe and Asia. Illinois-based electronics company Molex acquired Phillips-Medisize in 2017. Molex is owned by Kansas-based conglomerate Koch Industries.

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