Mass Layoffs Continue in Cannabis Industry – Globally

What’s one great way to tell if an industry is doing well? More jobs open up, and salaries improve. What’s a great way to know there are problems? When more and more jobs get cut. That’s where we are today, as mass layoffs continue in the cannabis industry, signaling a host of problems, with no solution in sight.

Industry issues

When the industry first started it was a true free-for-all. The predictions for market growth were off-the-charts, and it seemed like every big international company wanted to swoop into newly legalized locations to take advantage of this new reported cash cow of an industry. Everyone wanted in. Lots of people made investments. We all waited with baited breath to see who among us would become the new weed industry millionaires.

Now, we’re a few years in, and the landscape has changed, along with expectations. CBD has faded out into almost nothing, medical markets are getting eclipsed by recreational markets, which themselves are still often eclipsed by black markets. Prices remain high in many places due to insane taxing, and governments have been slow to pick up on this as an issue. Overproduction has (let’s be honest, predictably) come into play, causing prices to plummet in every venue. And the once thriving industry, is now showing its cracks, with sales plummeting in many places.

Last year the reports started really rolling in about industry closures and layoffs. Smaller names were already having a hard time making it in due to expensive regulation, extreme competition, and extra costs like slotting fees at dispensaries; making it seem like a game for the big dogs only. But even they’re having issues. And now as 2023 gets underway, the mass layoffs continue, both in the US, and around the world.

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Mass layoffs in the cannabis industry – global

Clever Leaves Holdings is a Colombian cannabis company with operations in Portugal. On January 23rd of this year, the company announced restructuring plans that include cutting nearly ¼ of its staff. Clever Leaves is in the medical space, creating pharmaceutical-grade products. This restructuring means winding down all operations in the Portugal location. In fact, the company wants to move everything back home to cut costs, saying:

“By exclusively cultivating and producing our cannabinoid products in Colombia, we aim to leverage our existing cost efficiencies in the country as we ramp our dry flower offering,” said Andres Fajardo, CEO of Clever Leaves. “We believe this transition will allow us to optimize our production infrastructure and drive increased cost savings, positioning us to compete more effectively in the global medicinal cannabis market.”

As of the end of September, the company had $12.1 million in assets in Portugal. The facility included cultivation, post-harvesting, and manufacturing activities; though it sounds like all of this will eventually end. It’s also not the only company operating out of Portugal that wants to cut back. On January 17th, cannabis giant Tilray Brands announced it too was looking to cut about a quarter of its staff. The facility in Cantanhede is also a medical cannabis products facility. Said a Tilray spokesperson to MJBizDaily:

“A total of 49 jobs will be affected in the production, manufacturing, quality, quality control (laboratory), cultivation, supply chain, facilities, warehousing, logistics, procurement, and IT. These changes, which are in line with Tilray’s rightsizing to meet the needs of the current economy and the state of legalization across medical and adult-use cannabis, will take place over the next three months.”

To give an idea why this is happening, consider that in the quarter ending November 30th, 2022, the company posted a $61.6 million net loss. Tilray is a public company and can be found on the NASDAQ and Toronto Stock Exchange under TLRY. Clever Leaves also had huge losses of $37.3 million, in the first three quarters of last year. It only earned $13.2 million in the same time frame. Clever Leaves is publicly traded under CLVR on NASDAQ.

In Canada, Delta 9 announced that it would temporarily lay off 40 people. This is interesting wording as it implies the company does believe it will be able to reverse these layoffs. Realistically, maybe it will, but a stronger reality might be that none of these jobs are coming back for any of these companies. This cut in the company’s Winnipeg facilities accounts for 40% of its staff.

Fellow Canadian company The Flowr Corporation (OTC:FLWPF) a cultivation services enterprise with locations in several countries, made some big changes last year to keep from bankruptcy. It cut employees to the tune of $4 million in savings, accounting for 40% of its workforce. Along with this, it made a deal to sell off its subsidiary Flowr Forests, a 16 acre property for cultivation. This is considered a non-core asset, and makes the company $3.4 million in revenue.

Mass layoffs in the cannabis industry – US

The US might not have federally legal weed, but it is home to the biggest cannabis industries. However, things aren’t doing better within the borders of the US, than they’re doing outside them. One of the big ones to announce major cuts of late? Columbia Care, Inc., which operates in several states, and owns Green Leaf Medical LLC, which is about to make a bunch of people jobless. How many? 73. As of February 28th.

According to the company: “In order to meet the appropriate supply and demand levels of the market, it was necessary for us to reduce the workforce at our cultivation and production facility.” It continued, “We are hopeful that with adult use on the horizon, this facility will be back up to full capacity in the future.” It’s pretty clear this cut is indeed due to a lack of business.

Leaflink, a wholesale tech platform out of New York, is also cutting jobs. Late last year it was reported that 80 employees were sent looking for new work. Much like the other companies to make cuts, the company explained: “Unfortunately, as the cannabis industry continues to face headwinds and the current macroeconomic environment, we needed to take the next step in our evolution to continue supporting the industry.”

Truelieve, a company offering medical cannabis products and services out of Tallahassee Florida, and which operates in many states, also made a similar announcement at the end of last year. Workers were cut from its McKeesport Pennsylvania cultivation facility, numbering approximately 36. This is technically small potatoes considering the company employs in the neighborhood of 8,000, but its also not the first cut. The company laid off workers in three Florida locations: Midway, Monticello, and Quincy, as well.

While the cut was blamed on “Trulieve’s $2.1 billion acquisition of Arizona-based multistate operator Harvest Health & Recreation in 2021,” it also came on the heels of the company posting a quarterly loss of $115 million.

Yet another Florida company, Springbig, a technology company for weed-specific marketing software, cut 23% of its workforce (37 employees) late last year. The company is trying hard to turn a profit amid an industry that seems harder and harder to turn a profit in. These cuts were meant to save $200,000 in the short term, and 21% in the first three quarters of 2023.

Springbig had just merged with Tuatara Capital Acquisition, in order to get on NASDAQ; trading under SBIG. The company’s shares have plummeted from $4.50 last June, to 82 cents at the end of 2022. Prior to the drop it had reported $24 million in yearly revenue, with a $275 million valuation, as per Green Market Report.

If you’re a big reader of cannabis news, then the publication Leafly is likely familiar to you. Well, even Leafly Holdings is having problems. In October of last year, it was reported that the cannabis resource and marketplace, would cut 56 jobs, or 21% of its staff. Leafly, traded under LFLY on NASDAQ, is looking to save approximately $16 million a year, saying, “These reductions will help preserve our ability to respond to opportunities as this industry continues to mature and expand, and allow us to more effectively manage our capital.”

Previously mentioned layoffs in the cannabis industry

This is unfortunately not the first time I’ve reported on cannabis industry layoffs. Last year made one thing very clear: the market is not as sound as many wanted to believe; and the overall market predictions in place, are falling short of reality.

Some of the big layoffs already reported on, include Weedmaps, which cut about 25% of its staff; Curaleaf Holdings, which just got rid of 220 employees; Akerna, which released 1/3 of its staff, or 59 workers; Dutchie, which removed 8% of its workforce, amounting to 67 jobs lost; Canopy Growth which sold all its retail locations, and cut 245 jobs last year; and Aurora Cannabis which cut 12% of its workforce as a part of corporate restructuring to save money.

With the biggest names in cannabis faltering, it brings up the question of who can survive. More companies to let employees go recently, include California’s Eaze, which laid off around 25 employees last year; Lume, a cannabis company out of Michigan closed four out of 30 of its stores; and Nature AZ Medicine, an Arizona medical cannabis company, cut up to 100 employees as a result of medical sales falling.

There’s nothing saying that 2023 won’t turn into a banner year for cannabis sales, and there’s nothing saying that all of these companies won’t recoup their losses, or hire back the numbers they lost. But right now, things aren’t looking fantastic for cannabis industry growth, and these layoffs are a good indication that more bad news might be coming.


Will the cannabis industry rebound? Or are these mass layoffs an indication that the weed industry has hit a wall? And maybe most important to ask, if it can be saved, what kind of changes are necessary in order to facilitate this?

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Cannabis Problems Part 2: Layoffs in The Industry

When an industry is doing well, there are more employment opportunities, and generally better pay. When it’s not, jobs are scarcer and paychecks are lower. Though there were glowing expectations for the cannabis sector, recent layoffs in the industry, signal yet another problem in the overall cannabis business landscape.

Weedmaps – A little info

There are tons of cannabis companies and brands out there, which helps explain the massive amount of competition. Sometimes, names are only familiar to those in a specific state, and sometimes the names resonate throughout the legal areas of the country. One such example, is Weedmaps.

Let’s say you’re in Chicago, or San Diego, or Boston, and you want to find yourself a list of the dispensaries around. Well, Weedmaps is your guy. As Weedmaps is a tech industry providing a service, but no actual direct cannabis product, it has the ability to operate in any location, since it isn’t associated with actual cannabis, just where to find it.

The company, which went public in 2021 under WM Technologies (and trades under MAPS), offers dispensary information for interested clients. It gives updated addresses, reviews, and menus for the different weed stores. It also helps people find doctor’s offices, different brands, and to locate delivery services in their area. Though the site itself doesn’t offer weed directly, it does allow patrons to order from their dispensary through it, making it a sort of middleman. And of course, the site offers further learning information in the form of news, strain information, and so on.

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Weedmap’s mobile app is the most downloaded and used marijuana application in either the Google Play store or Apple store. It acquired the Denver-based software company MMJMenu in 2011, which provides software for dispensaries to handle all kinds of things like checkouts, inventory, and managing patients. In 2019, the company announced it would launch its own point of sale service, called WM Retail, with live menu integrations.

Founded in 2008, the company is headquartered in Irvine, California, with additional offices in Denver, Tucson, New York, Barcelona and Toronto. About a year after opening, the New York Daily News had this to say about the new company: “There’s a new stoner’s paradise on the Web… where medical marijuana patients can connect with other patients in their area, to freely discuss and review local cannabis co-operatives and dispensaries.” At the time, this was a much bigger deal than it is today.

The company partnered with NORML, a social welfare organization that pushes for marijuana reform, in 2011. Making it more official that it was a fighter in the legalization effort. It even opened a museum exhibit in West Hollywood in 2019, aptly titled the Museum of Weed. The 30,000 square-foot enterprise tells the story of marijuana in the last 100 years. The museum is currently closed, with no further info on reopening.

Cannabis layoffs – Weedmaps cuts 25% of staff

Sounds like Weedmaps is doing pretty great, right? A real winner in what’s proved to be a difficult industry. Yet, things aren’t as clear-sailing, as the above description implies. While Weedmaps has certainly enjoyed much success, its also ran into some issues. Issues that represent some of the overall problems in the cannabis industry. Last month, Weedmaps made yet another announcement. That it would lay off 25% of its staff. That’s an entire quarter of the company. And for a company that actually does well in the industry.

There are some details about the move. WM Technologies is looking to get rid of 175 of its employees, which is about 25% of its staff, according to a regulatory filing on November 29. The layoffs will cost WM Technologies approximately $10.7 million, which include severance and benefits payments.

Though it might not happen all at once, its expected that this transition will “be substantially complete by the first quarter of 2023, subject to local law and consultation requirements, which may extend the process in certain countries.” By the end of 2021, the company had 607 employees between the US and Canada. This announcement comes after the company already cut 10% of staff in August due to lowered revenue.

Lower sales lead to cannabis industry layoffs

Why is this happening? According to the regulatory filing, “This decision was based on cost-reduction initiatives intended to reduce operating expenses and sharpen the company’s focus on key growth priorities.” This makes sense as at the same time, the company warned investors to expect “a year-over-year decline in the low double digit percentage area” for the 4th quarter. In fact, WM Technology lost 80% of its value on NASDAQ this year.

Things were bad enough that this past November, old CEO Chris Beals, decided to leave out, and was replaced by co-founder, executive chair, and the former CEO, Doug Francis. This usually doesn’t happen in a company without a lot of issues. Beals not only exited the CEO position, but his seat on the board as well.

In a showing of how quickly things can about-face, the company had turned a $49.2 million profit last year, before it posted a $10.5 million loss in this year’s 3rd quarter. Also and interestingly, it had an increase in monthly paying customers from last year to this year by about 25%, but revenue per client fell 21%.

Where else is this happening?

What does it say when a company that was actually making it, turns and lets go of a huge percentage of its staff? That things might not be the smooth ride that they once were. Just as many states like Colorado are experiencing decreased dispensary sales, and less tax revenue, a company like Weedmaps also feels the burn. And its not the only one.

Another of the big and recent cannabis layoffs, was Curaleaf Holdings, which dropped about 220 employees right before the Thanksgiving holiday. Curaleaf ran into legal issues earlier when it was sued for selling tainted CBD products. Why the layoffs? According to an insider, they’re “a part of an effort to control costs and drive efficiencies in the face of economic uncertainties ahead.”

Similar layoffs were seen by Akerna, a cannabis compliance software company out of Denver. In May, that company laid off 59 employees which accounts for 1/3 of it workers, while also cutting operation costs by $440,000. Even executives are taking a 25% pay cut to help with cost-cutting. Much like a change in CEO, this never happens without problems. The company’s problem is that it lost $20.6 million in operating costs for the first quarter of 2022, ending the quarter with a working capital deficit of $15.1 million.

Parts of cannabis industry
Parts of cannabis industry

Then there’s tech firm Dutchie, which works with around 5,000 marijuana stores in the U.S., providing e-commerce solutions including payment processing. The Oregon-based company announced cuts this past summer of approximately 8% of its workers, amounting to about 67 jobs lost. Dutchie made this decision not because of its own losses, but as a matter of watching current trends.

Want more cannabis layoffs? Yet another is the California company Eaze, which laid off around 25 employees. Michigan retailer Lume Cannabis closed four of its 30 stores, and Nature AZ Medicine out of Arizona cut as many as 100 employees since medical sales have fallen in general. Big name Aurora Cannabis out of Edmonton, Alberta, also said in June of this year that it would cut 12% of its workforce for corporate restructuring.

And what of Canopy Growth Corp.? The largest cannabis company in 2019 has taken it hard enough to not only sell all its retail locations, but to cut 245 employees (8% of its workforce); all in hopes of saving CA$150 million in the next 12-18 months. The company even closed its cultivation facility in Niagara-on-the-Lake, which it had acquired back in 2014.


No matter how you look at it, these moves don’t signal good things for the legal cannabis business world. In fact, cannabis industry layoffs, as well as the decreased sales revenue they come from, are a great indication that if this industry is to continue, it will have to adapt fast to its new environment.

Go back to Cannabis Problems Part 1: Colorado and Lower Sales for more information on the issues that plague today’s cannabis industry.

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Problems in The Industry? Cannabis Giant Canopy Growth Sells Retail locations

It’s the coolest industry in the world, right? Well, maybe it is, but for all the government claims of tax flow, it doesn’t seem to be the most lucrative. Now, as industry giant Canopy Growth makes deals to sell its retail locations, what does this really say about our coolest new industry?

Canopy Growth selling its retail locations could signal a big problem in the retail weed market. This news site is an independent resource for stories in the growing cannabis and psychedelics industries of today. Subscribe to the Cannadelics Weekly Newsletter for regular updates to your email, and to get access to a host of awesome deals on a range of products including vapes, smoking devices, edibles, other cannabis paraphernalia, and the highly-in-demand cannabinoid compounds Delta 8 & HHC. You can find more info in our ‘best of’ lists, so head on over, and pick out the products you’re most happy to use.

Who the heck is Canopy Growth?

A decade ago, cannabis companies weren’t much of a thing. Sure, there were some medical markets opening, but recreational was still years away, and the same issue of federal government illegalization kept anything from really popping on a huge level. Plus, weed was still illegal for all purposes nearly everywhere in the world at that time, so no large global markets existed.

Since then, the cannabis industry has become a real thing, complete with verticals from seed to sale. And while we hear of all the money its worth, and projections for how big it *could get, the reality has been creeping alongside the whole time; that it’s not quite the lucrative industry so many predicted. In fact, it’s quite the opposite, a very much struggling industry. This is exemplified by recent news of industry giant Canopy Growth, making plans to sell off its 28 brick-and-mortar retail locations.

Canopy Growth isn’t a nobody in the industry. The company, based out of Swiss Falls, Ontario, in Canada, was the largest cannabis company in 2019 in terms of stock value. Canopy Growth came out of a merger between Tweed Marijuana, Inc, and Bedrocan Canada, in 2015. The company has the designation of being the first Canadian cannabis company to be federally regulated, licensed, and publicly traded in North America.

It trades under WEED on the Toronto Stock Exchange, and opened in the New York Stock Exchange under CGC in 2018. It was the first cannabis producer to enter the NYSE. Canopy was also the first company to make a recreational cannabis sale when it was officially legalized in Canada. This took place in a Tweed store located in St. John’s, Newfoundland and Labrador.

Back in November 2016, the company was singled out as the first unicorn of the weed industry, with a $1 billion valuation according to the Financial Post. The company operates dispensaries through its subsidiary Tweed, Inc. in the provinces that allow a private sector market, including Manitoba, Saskatchewan, and Newfoundland and Labrador. It operates as well in Manitoba and Ontario under the brand name Tokyo Smoke.

By 2018, the company had market capitalization exceeding $14 billion, and Canopy even funded Professorships in Cannabis Science at University of British Columbia in Vancouver. However, the company’s quick rise, started to falter in 2018. The biggest issue stemmed from Canopy’s attempt to make greenhouses in British Columbia and Quebec larger, which led to pretty big losses. How big? In the last quarter of 2018, the company posted losses of $335.6 million for shareholders. Constellation Brands, which held four out of seven board seats at that time, was unhappy with the company’s direction.

All this led to an emergency board meeting where CEO Bruce Linton was thrown out; but this didn’t stop stock prices from falling. In 2019, stock prices slid further down for Canopy, and it was reported that all of the cannabis industry was suffering, showing the lowest numbers since 2017. The company instituted new CEO David Klein in December 2019. By 2020, Canopy was already announcing the closing of stores.

Canopy Growth has operations globally. It’s partnered with Alcaliber S.A. pharmaceutical company in Spain; owns Spectrum Therapeutics GmbH in Germany for medical cannabis imports; is partnered with Spectrum Cannabis Denmark ApS, which cultivates medical cannabis; acquired Annabis Medical, a Czech Republic distributor; as well as Daddy Cann Lesotho, an African medical cannabis supplier; has a partnership with the UK’s Beckley Foundation for medical cannabis; and has other operations in Australia, Brazil, Peru, Chile, and Jamaica.

Canopy Growth sells retail locations

It was already a downhill slide for the weed giant, so this latest news isn’t surprising, but it is a little depressing; especially in what it signals for the legal marijuana industry as a whole. On September, 27th, 2022, the company announced that it was forging agreements to sell off its retail market locations throughout Canada. This includes retail stores under both the Tweed and Tokyo Smoke brand names.

OEG Retail Cannabis, already a Canopy partner that owns and operates franchises of Tokyo Smoke stores in Ontario, will take all of Canopy’s corporate stores outside Alberta, and all intellectual property related to Tokyo Smoke as well. Canopy also reached an agreement with the company 420 Investments Ltd., in which the latter will take ownership of five retail locations within Alberta. Neither deal is officially closed, as they are both subject to regulatory oversight and approval.

While this doesn’t necessarily say good things about how Canopy Growth sees the retail market, it’s certainly not the end of the company, which is using this move as a way to refocus attention elsewhere. According to its press statement, the company will continue on with a focus on premium cannabis consumer packaged goods.

According to David Klein, “We are taking the next critical step in advancing Canopy as a leading premium brand-focused CPG cannabis company while furthering the Company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market.”

Premium cannabis goods
Premium cannabis goods

He continued of the deals, “By realizing these agreements with organizations that possess proven cannabis retail expertise, we are providing continuity for consumers and team members. Through the best-in-class retail leadership that OEGRC and FOUR20 have demonstrated, they will continue to serve Canadian consumers with the high-quality in-store experiences that are essential for success in a new industry.”

It’s expected that this change will lead to operational savings for the company. These savings are projected to put the company back at the high end of their yearly target range. The company announced its overall cost reduction plan earlier this year in April.

What does this mean for the cannabis industry?

Companies switch direction all the time, or take on new ventures. Technically, it’s not that weird for a company to see a different aspect of a market, and go towards it. Cannabis food products are getting quite popular, so it could be seen as Canopy Growth simply changing lanes for the drive forward.

But there are some other stark realities to this situation. Realities that are often hidden behind announcements of all the cannabis tax income for states. The reality that this industry is not bringing in nearly as much revenue as expected. That the black market is a formidable opponent that many still prefer, and that legal markets were instituted with taxes so high, that it makes legal operators struggle to stay afloat. Sure, some companies are making money, but not that many.

It’s easy to forget that one of the biggest winners in the weed game is not private companies, but government entities. And for them, this is all new income; so whether its high or low, its adding money to government coffers. Think of how much cigarettes cost because of those ‘sin’ taxes meant to dissuade us from buying them. Obviously, sin taxes don’t work, but what they do mean, is that as we continue to buy these sinful products (in the same quantities as when they weren’t taxed to kill us), the government reaps the benefits.

Philip Morris still makes plenty of money from cigarettes, but probably not as much as the government. In Mexico, for example, its reported that an entire 70% of the price of a pack of cigarettes, is taxes. That governments have turned taxing items into a full industry, means that governments can profit off an industry as much, or more, than the actual companies within it. Such is the case right now with cannabis, where tax money is coming in, but the markets themselves are waning.

This whole concept was exemplified well by economists Daniel Sumner and Robin Goldstein, who together put out the book Can Legal Weed Win?: The Blunt Realities of Cannabis Economics. The two UC Davis, Department of Agricultural and Resource Economics professionals, who did an interview for TIME magazine, point out how the legal weed industry is very much weighed down by overly strict regulatory measures, a market competitive within itself and with the black market, and because of a host of agricultural issues that come up in the industry.

As Sumner put it, “There are companies that have done well and there are lots of companies that have not done well at all. There are growers that are doing OK and there are lots of farms that are not doing OK at all… It’s been a gold rush and a few people have found some gold and a lot of people haven’t.”

Canopy Growth retail cannabis
Canopy Growth retail cannabis

Goldstein explained further about investing in the industry, that “The ones that are probably making the safest money are probably the ones who were taking flat fees… But folks who took their compensation in the form of shares in these big cannabis holding companies, those stocks have not done well on the whole.”

If this doesn’t sound like the headlines blaring about a massive and growing weed industry, with no obstacles in its way, that’s because those headlines mainly speak in market projections, and market projections aren’t real. That’s the nature of projections, they’re just someone’s thoughts, but they’re not facts, or indicative of what will actually happen. Market projections were extremely high for the cannabis industry, but that never meant they had to be realized.

In actuality, according to Sumner, “People say this is a $100 billion industry. Robin and I are skeptical of that, but there could be a $10 billion industry, which is a lot of money if shared among a few players… We’ve seen nothing like the consolidation yet where the really big money could be coming. We haven’t even seen an indication that it’s going that direction.”

Canopy Growth is one of those big players, which is why this move is a possible signal of a bigger problem; namely an inability to really make enough money outside of projections. After all, why would a leader in the retail cannabis industry, give up that part of their business in an effort to recoup losses? As Canopy Growth sells its retail locations and exits that part of the game, we should wonder who can survive in the market, if this company can’t.


The news that Canopy Growth is selling its retail locations to focus on other aspects of the market in an attempt to recoup losses, is a pretty big indication that its a bumpy ride in the cannabis retail industry. What will happen next for Canopy Growth and the market in general? Stay tuned to life to find out.

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