- Curaleaf is cutting about 50 jobs and will close a facility in Sacramento, the insider learned.
- The job cuts come as sales of legal cannabis in California’s competitive market slow.
- Curaleaf’s stock is down 30% since January.
Troubles are mounting for the California cannabis industry, and even the largest companies have not been spared.
Curaleaf, which grows and sells cannabis in several U.S. states, notified California sales staff of layoffs Aug. 9 and plans to close its Sacramento facility, the company told Insider. Curaleaf said fewer than 50 employees were affected, including fewer than 10 sales reps, and most were given at least 60 days’ notice.
Sales reps were all working remotely, and the Sacramento facility will cease operations by the end of the year, the company said.
“These adjustments, while unfortunate, are necessary to the business and were made in response to market changes and the competitive landscape in California,” Tracy Brady, Curaleaf’s senior vice president of communications, told Insider.
Brady added that Curaleaf has tried to move as many employees as possible to other positions within the company.
Curaleaf has over 5,700 employees and operates in 21 states, according to the company’s website. Like other public cannabis companies in the U.S., Curaleaf stock has suffered this year. Shares are down 30% since Jan. 3.
MSOS, an exchange-traded fund that tracks a basket of U.S. cannabis stocks like Curaleaf, has fallen over 50% since January.
Other companies in the cannabis industry are also cutting. Cannabis tech company Weedmaps laid off 10% of its employees in early August, with CEO Chris Beals citing a drop in sales in California in a letter to employees, Insider reported. Cannabis startups Eaze and Dutchie cut staff earlier this year.
Earlier this month, Curaleaf pulled thousands of cannabis products from medicinal pharmacy shelves in New York after an investigation by NY Cannabis Insider found the potency was mislabeled. The company’s chief executive, Boris Jordan, is embroiled in an ongoing legal battle in Oregon with the founder of Cura Cannabis, which Curaleaf acquired in 2020 in a $400 million all-stock deal.
To Read The Rest Of This Article By Irene Garcia & Jeremy Burke on Local Today via Business Insider
Published: August 31, 2022
Founder & Interim Editor of L.A. Cannabis News