Cannabis sector layoffs continue as Weedmaps cuts 25% of staff

The parent company of cannabis advertising platform Weedmaps is laying off roughly 25% of its staff, or up to 175 employees.

“This decision was based on cost-reduction initiatives intended to reduce operating expenses and sharpen the company’s focus on key growth priorities,” WM Technology disclosed in a Nov. 29 regulatory filing.

WM Technology said the layoffs would cost about $10.7 million, including severance payments and employee benefits.

It expects the staff reduction to “be substantially complete by the first quarter of 2023, subject to local law and consultation requirements, which may extend the process in certain countries.”

The Irvine, California-based company employed 607 people as of the end of 2021, including 595 in the United States and 12 in Canada, according to an annual report.

WM Technology subsequently laid off 10% of its staff in August.

The company’s former CEO, Chris Beals, departed in November, as WM Technology posted a $10.5 million quarterly net loss.

At the time, WM Technology management warned investors to expect “a year-over-year decline in the low double digit percentage area” for the company’s ongoing fourth quarter.

The Weedmaps layoffs are part of a broader trend among North American cannabis companies, who have slashed hundreds of jobs this year.

Multistate operator Curaleaf Holdings laid off approximately 220 employees ahead of the Thanksgiving holiday last month.

WM Technology shares trade as MAPS on the Nasdaq exchange, where they have lost more than 80% of their value year-to-date.

Source: https://mjbizdaily.com/cannabis-sector-layoffs-continue-as-weedmaps-cuts-25-of-staff/