Connect with us

Business

Non-revenue-generating cannabis jobs in peril as demand grows for hourly workers

Published

on

For evidence of headwinds facing the regulated marijuana industry, look no further than the cannabis labor market.

As headlines from the past several months attest, employers ranging from multistate operators to small cannabis businesses to ancillary companies have laid off employees.

And for the first time since regulated marijuana markets opened in the United States, the number of cannabis jobs in the country contracted during the past year, according to a report released in February 2023 by Denver-based marijuana industry recruiting firm Vangst.

A national decline in cannabis industry jobs was unfathomable a year ago, given the many new markets and those getting ready to launch.

But global inflation, depressed cannabis prices, a dearth of investment dollars as well as oversaturation in mature markets have compelled many marijuana companies to lay off workers, Vangst reported.

The firm found there were 417,493 cannabis industry jobs (both plant-touching and non-plant-touching) in early 2023, a drop of about 2% from the 428,059 jobs the firm tallied the same time last year.

The days of the “Great Resignation” seem a distant memory now. Recruiters report that fewer cannabis businesses are posting jobs, and many industry workers fear for their job security.

“The tables have totally turned,” Vangst CEO Karson Humiston said. “The days of candidates demanding double their salaries (not to leave a company) are over.”

At the same time, there are reasons to be hopeful that the cannabis industry could resume its place as the job-producing juggernaut it was not long ago.

“We are definitely seeing some layoffs in certain states, but it’s definitely not all doom and gloom,” said Liesl Bernard, CEO of CannabizTeam, a national recruiting firm headquartered in San Diego.

“We’re seeing a huge surge of hiring in the states that just became adult use, like Maryland and Missouri. All those eastern states are hiring.”

Amid the uncertainty and tumult, a few labor trends have emerged, and cannabis executives would be wise to remember them:

  • This is an employers’ job market.
  • Generally, jobs are being lost in mature state markets but gained in new markets, resulting in an eastward migration of cannabis workers.
  • The most vulnerable jobs are in middle management, human resources and marketing, while hourly workers are in most demand.
  • Many cannabis businesses are turning to temporary workers and part-time executives to replace full-time employees.

Observers hope the silver lining to the labor downturn is that business leaders will become more deliberate about workforce planning.

Employers’ market

In the current labor market, employers have leverage over employees, observers said.

“Companies have a lot more choice as far as top talent is concerned,” Bernard said.

“And a lot of companies are using this opportunity to upgrade their bench and look at their team, saying, ‘Where do I need more firepower? Where should I add executives?’

“Because they’re easier to find in the market right now.”

At the same time, as companies lay off more people, they in turn demand that surviving workers do more, observers said.

“We’re seeing many companies revert to earlier years, when executives wore three or four hats rather than having one specific job function,” said Kara Bradford, CEO of Seattle-based Viridian Staffing, a national cannabis recruiting firm.

“For example, someone who only handled Metrc for their entire organization now may be doing Metrc, quality assurance and compliance.

“What were three positions 10 months ago have now been rolled into one.”

Those employees could consider themselves lucky to still be in the cannabis industry, however, as people interested in joining marijuana companies are finding it harder to break in than in years past.

Companies are seeking candidates with cannabis experience, and many are looking for work, Bradford said.

The hardest-hit positions are in middle management, human resources and marketing, observers said.

Middle managers are frequently among the first to be laid off because when companies look to reduce head count, they try to balance the number of individual contributors reporting to a manager, Bradford said.

“You don’t want 50 people reporting in to one manager because how is that manager going to be able to help grow and develop those workers? … It’s just not reasonable,” Bradford said.

“When you’re reducing the number of individuals within your organization, you don’t need as many layers in the middle to support those workers.

“That’s the reason why we see middle management getting laid off, and it’s not just in cannabis.”

Other positions that are getting hit hard are those not perceived as “revenue generating,” Bradford said, including human resources, marketing and compliance, which are being outsourced to third-party providers.

One exception in the current environment is hourly positions.

“Hourly workers haven’t been impacted,” Humiston said, explaining that cultivators and manufacturers still need harvesters, extraction technicians, packagers and other jobs that get product to market.

Right time for part time

Economic uncertainty has led many companies to use temp workers, fractional staff and consultants because it’s more affordable than hiring permanent staffers and offers greater flexibility.

Employers don’t have to offer temp workers full-time benefits, for example, Bernard said.

There’s flexibility because employers can bring in talent as they need it, and there’s agility because the company that is hiring doesn’t have to go through a formal hiring process.

By trying someone out as a temp first, companies get the assurance of having seen them perform and deciding how they fit into company culture, Bernard said.

“We’re seeing a lot of companies switching to more of a hybrid workforce in the industry and only hiring executives full time that are key to the organization,” Bernard said.

CannabizTeam’s temp staffing arm is seeing more business from MSOs, Bernard said.

A lot of those jobs are entry-level positions to help with pre- and post-harvest staffing as well as spots on manufacturing and packaging lines, Bernard said.

Eastward migration

Most cannabis industry layoffs have happened in mature markets in the West – most notably California, which had the biggest drop in cannabis industry jobs.

However, job growth in the East has led to a migration of workers from western to eastern markets.

“The new license holders in those states are all hiring, and they prefer people with experience,” Bernard said.

“They’re luring them with better benefits and even higher salaries. Most companies will also pay for relocation.

“We’re definitely seeing a little bit of an eastward migration as far as talent is concerned.”

She added: “Cultivation and manufacturing are really big in Maryland right now, getting enough product available for the demand that they’re seeing with adult use. There’s a lot of hiring in each vertical, from cultivation, extraction, manufacturing, retail and all the C-suite roles in those states as well.”

Bernard noted that many East Coast natives who went west to work in cannabis are returning home.

Talent drain

One concern in the current marijuana labor market is that hourly employees and salaried workers will leave cannabis for other sectors because of the industry’s’ struggles and other sectors’ ability to offer attractive pay and benefits packages.

“Companies should retain as much of the exceptional talent we have in this industry,” Bradford said.

“I’m really worried about brain drain or talent drain, because as an industry we’ve spent so much time bringing in people from other industries and training these individuals, helping them understand cannabis and also learning from them about what best practices from other industries do and don’t work in cannabis.

“One of my biggest concerns is that we are losing talent to other industries, and we won’t be able to get them back.

“One big trend right now is attrition. It’s higher now than it’s ever been for hourly workers. … We’re competing for the same hourly worker talent as a lot of other industries right now.”

Source: https://mjbizdaily.com/non-revenue-generating-cannabis-jobs-in-jeopardy/

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

Published

on

By

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.

Continue Reading

AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

Published

on

By

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.

Continue Reading

Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

Published

on

By

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.

Continue Reading

Trending

Copyright © 2022 420 Reports Marijuana News & Information Website | Reefer News | Cannabis News