Business
Employee numbers up at some cannabis MSOs despite challenging conditions
News of widespread layoffs at cannabis companies across the United States has dominated headlines, but an analysis of employee counts at America’s largest multistate operators shows several actually grew their payrolls last year.
The fact that employee payrolls were up for some marijuana MSOs at the end of 2022 but down for others underscores how several factors can play a role in determining a company’s health.
Those factors include geographic footprint, taxes, operating costs and capital availability, experts said.
“The present moment is the Great Rationalization for the industry,” Paul Josephson, a New Jersey-based partner and leader of the cannabis industry group at the Duane Morris law firm, told MJBizDaily via email.
“Price compression and profitability varies tremendously by state and even within a state. So smart operators are taking a hard look at where they are investing their human capital.”
That means winding down operations in some areas and investing in others with more opportunity for revenue growth.
The number of employees at MSOs such as Ascend Wellness Holdings, TerrAscend Corp., Ayr Wellness and Curaleaf Holdings increased last year compared to 2021, according to securities filings.
By contrast, employee numbers at other MSOs such as Trulieve Cannabis, Cresco Labs, Columbia Care and Verano Holdings dropped, according to securities filings.
Employee numbers at cannabis tech platforms Weedmaps and Leafly Holdings also shrank over the course of 2022.
A report by Vangst estimates that total employment in cannabis in the United States declined by 2% – even though sales rose by 3% from $25.3 billion in 2021 to $26.1 billion in 2022.
Jeff Wissink, a Chicago-based principal at the advisory, assurance and tax firm CohnReznick, told MJBizDaily via email that downsizing and lower head counts are a result of the lack of liquidity in capital markets, high taxes and the high costs of doing business.
“That means that regardless of the market(s) in which you operate, you must run an exceedingly lean operation to achieve even minimal profitability,” he wrote in an email to MJBizDaily.
“If you’re not reaching profitability, you need to understand how long your runway is from a cash perspective.”
Head count decreases alone aren’t necessarily indicative of the health of a business, Wissink said. Revenue growth and profitability are also important to take into account.
Trulieve employee count drops
Florida-based Trulieve (Canadian Securities Exchange: TRUL; over-the-counter markets: TCNNF) had the most significant drop in employee numbers, from roughly 9,000 at the end of 2021 to 7,600 at the end of 2022 – a 16% decline.
During Trulieve’s fourth-quarter and year-end earnings call, CEO Kim Rivers said the MSO is aiming for annualized growth cost savings of approximately $100 million.
Revenue grew to $1.2 billion in 2022 from $938 million in 2021, which Trulieve attributed to the company’s:
- $2.1 billion acquisition of Harvest Health & Recreation.
- Expanding its footprint in Pennsylvania.
- Expansion into Massachusetts and West Virginia.
So far, Rivers said, the company has reduced wage costs by approximately 20% by eliminating redundancies related to the Harvest Health acquisition.
Trulieve also exited the Nevada market, shuttered some of its California retailers and closed “duplicative” production assets in Florida, where it is ramping up production at its 750,000-square-foot facility.
“The new facility utilizes state-of-the-art automation and a proprietary design, which we expect will yield efficiencies and cost-savings as the facility ramps throughout the year,” Rivers said on the earnings call.
The company did not respond to requests from MJBizDaily for more detail.
According to Wissink, Trulieve and other companies reducing employee counts will see long-term benefits only if they streamline underlying processes and systems.
“Meaning, if you simply reduce headcount, but don’t ultimately reduce the amount of work that needs done or the efficiency by which you do that work, those headcount(s) will ultimately creep back in,” he noted.
Head count, revenue up at MariMed, Ascend, TerrAscend
The employee count at Massachusetts-based MSO MariMed (CSE: MRMD; OTC: MRMD) more than doubled over the course of 2022, from 326 at the end of 2021 to 681 in 2022.
MariMed’s revenue grew from $121.5 million in 2021 to $134 million in 2022, and MariMed’s net income was more than $13.6 million in 2022, up from $7.6 million in 2021.
During the company’s fourth-quarter and full-year earnings call, CEO Jon Levine attributed the results to organic growth and plenty of M&A.
In 2022, Levine said, MariMed:
- Acquired and consolidated its Maryland vertical operation.
- Bought an Illinois craft grow license and a dispensary license.
- Acquired a Missouri processing and distribution license.
- Won a new medical dispensary license in Ohio.
“We are very excited for Ohio and Missouri, our two newest high-growth markets,” he said.
Employee numbers at multistate cannabis operator TerrAscend (CSE: TER; OTC: TRSSF), which has offices in California, Pennsylvania and Ontario, Canada, grew by 37% in 2022.
TerrAscend reported net revenue of $247 million in 2022, a 21% increase from its 2021 revenue of $194 million.
President and Chief Operating Officer Ziad Ghanem (who was recently appointed to the CEO role) attributed the growth to the company’s customer experience.
“The look and feel of our stores, the quality of our service, friendliness and efficiency are the reasons for the loyalty of our customers and patients,” he said on the company’s earnings call.
Employee count at New York-based MSO Ascend Wellness (CSE: AAWH; OTC: AAWH) grew by 33% through 2022, from approximately 1,500 at the end of 2021 to more than 2,000 workers at the end of last year.
Ascend’s revenue grew 22% in 2022 to $406 million. The company reported a net loss of $80.9 million.
Frank Perullo, Ascend’s co-founder and interim CEO, attributed the growth to success in New Jersey’s new adult-use cannabis market.
Ascend also grew cultivation capacity by 40% and its dispensary count by nearly 20%.
New York-based Curaleaf hasn’t reported its full-year or fourth-quarter financial results yet.
CEO Matt Darin told MJBizDaily in an interview that the company’s employee count has increased overall despite recent layoffs and its exit from California, Colorado and Oregon because, after four years of growth, it’s time to optimize investments.
“We’re making sure that we are allocating our resources where we see the best opportunities,” he said.
“So that’s why we’re hiring and growing and expanding in places like Florida, where we continue to open new stores and continue to increase operations and launch new products.”
Weedmaps, Leafly employee counts drop
Cannabis tech platforms Weedmaps and Leafly both lost employees in the past year.
The employee count at California-based Weedmaps decreased by nearly 4%, from 607 to 583, from 2021 to 2022.
In the fourth quarter of 2022, revenue also declined for Weedmaps to $49.3 million from $54.2 million in the fourth quarter of 2021.
Full-year revenue grew to $215.5 million in 2022 from $193.1 million in 2021.
Weedmaps’ net loss was $82.7 million last year compared with a net income of $152.2 million in 2021.
Executive Chair Doug Francis said Weedmaps will focus on “driving a lean mentality” in every aspect of its operations in the coming year.
“We’ve already done the heavy lifting, removing excess layers of management across the company, simplifying processes and changing the way we work to drive sales and savings,” he said.
The head count at Leafly dropped from 236 to 204 through 2022.
Another recent round of layoffs led to the termination of another 40 employees.
Revenue grew by 10% through 2022 to $47.4 million. The company reported a profit of more than $5 million, but operating costs skyrocketed by more than 40%.
Wissink attributed the company’s challenges to the same macroeconomic issues the rest of the industry is facing.
“When things get tight, cannabis companies cut budgets on marketing,” Wissink added.
“Weedmaps and Leafly ultimately make their money on cannabis companies spending on marketing.
“They’re going to be hurt given current market trends. This goes for really any supplier of ‘discretionary spend’ to the space.”
Source: https://mjbizdaily.com/employee-numbers-up-at-some-cannabis-msos-despite-challenging-conditions/
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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