Business
Pennsylvania medical marijuana grower lays off dozens of employees
Hanging Gardens, a Johnstown, Pennsylvania-based medical marijuana cultivator, is laying off dozens of staffers, blaming lax state regulations and the deep pockets of multistate marijuana operators.
This continues a trend of recent layoffs across the country where several companies have let dozens of workers go as the marijuana market experiences the typical volatility of a nascent industry.
The threat of a recession also is overhanging the market and forcing companies to keep a tight lid on costs.
The Johnstown Tribune-Democrat reported that 50 of Hanging Gardens’ approximately 110 workers were given partial or full layoffs, including 30 full-time staffers.
The company plans to sue the state on grounds that the program isn’t adhering to the law passed in 2016 that was designed to prevent monopolies.
Hanging Gardens’ chief financial officer, Shane Kenney, told the Tribune-Democrat that despite the law’s intent to limit the number of sites a single business can operate in the state, a number of MSOs have grabbed licenses by acquiring other companies.
Source: https://mjbizdaily.com/pennsylvania-medical-marijuana-grower-lays-off-dozens-of-employees/