Cannabis-tech firm Weedmaps is cutting up to 25% of its employees as the industry’s downturn continues.
Weedmaps is laying off as many as 175 employees, as the marijuana review site struggles.
Most of the layoffs were made in the last week, the company told Insiders. Weedmaps previously laid off 10 percent of its workforce in August, Insider reported. Weedmaps CEO Chris Beals resigned on Nov. 7, leaving Weedmaps co-founder Doug Francis to run the company temporarily.
“The decision to unwind these positions was a difficult one, but it was necessary to look to profitability and positive cash flow through 2023,” Francis Insider said in an emailed statement. “I am well aware of the hardship this creates for the employees involved.”
Weedmaps stock is down more than 80% this year, and the company has a market cap of just $200 million, down from a peak of more than $1.5 billion in December 2020. Its clients, cannabis companies, have cut back on spending as they face regulatory uncertainty, plunging pot sales and a tough economic environment.
Company lists cannabis stores on its website, so consumers can browse dispensaries and see reviews of cannabis products. It provides a way for cannabis companies to connect with customers and market their products.
Weedmaps is far from the only cannabis company to lay off workers in recent months. Cannabis giant Curaleaf laid off more than 200 workers last week, Insider reported. Company said in a regulatory filing that it will pay an estimated $10.7 million in severance, benefits and other costs related to the layoffs.
