(Reuters) – Juul Labs Inc has told employees on Thursday that it has stopped its bankruptcy preparations and is working on a cost-cutting program, the Wall Street Journal reported, citing company officials.

The company also plans to lay off about 400 people and reduce its operating budget by 30% to 40%, the report added.

Juul did not immediately respond to a Reuters request for comment.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shailesh Kuber)