![]() ![]() A lot of that consolidation means if you’re a manager, you call it labor-saving efficiencies. ![]() ![]() “Production went way up, but the number of farms went way down,” Sumner said. “It’s a new industry,” he said, “and companies are coming and going and being acquired in all parts of the industry – not just growing and processing and selling.”Ĭonsolidation in the marijuana industry is similar to what happened to Wisconsin’s dairy industry, which lost 10% of its farms in 2019 and 44% over the past 10 years. “The legal cannabis business is volatile,” said Daniel Sumner, professor of agricultural and resource economics at the University of California, Davis and co-author of “Can Legal Weed Win? The Blunt Realities of Cannabis Economics.” The company’s goal is to turn its first profit next year.Īnother Canadian public company, Canopy Growth Corp., disclosed in August it cut 245 employees – or about 8% of its workforce – as part of sweeping changes across the company designed to help stem recent losses and nudge the struggling producer to profitability.Ĭanopy said it expected the cuts and adjustments to generate up to CA$150 million in savings in 12-18 months.Ĭanopy also closed its cultivation facilities on 23 acres in Niagara-on-the-Lake, Ontario, last year. The company expects the move will save up to 90 million Canadian dollars ($69 million) and put it on the path to profitability. “The guys who come in to handle turnarounds don’t understand the market and cannabis,” said Avis Bulbulyan, CEO of Siva Enterprises, a California-based marijuana consulting firm.Įdmonton, Alberta-based Aurora Cannabis said in June that it was cutting 12% of its workforce as part of a corporate restructuring. In addition to inflation and economic woes, cannabis businesses are grappling with staffing issues.įor one, many public marijuana companies are undergoing turnarounds, which often translate into the shedding of employees. The realignment, disclosed in July, comes at a time when marijuana prices in Michigan have tumbled because of market saturation. Michigan-based Lume Cannabis closed four of its roughly 30 stores in the state but did say it plans to open three additional stores in more populated areas.Arizona medical marijuana grower Nature AZ Medicine laid off around 100 employees as medical sales drop and recreational sales spike.California-based cannabis advertising giant Weedmaps cut 10% of its roughly 600-member workforce, citing market contractions in California, Colorado and Oklahoma.They include falling wholesale marijuana prices, cash-strapped consumers and structural changes affecting the industry, experts said.Īmong the more notable plant-touching companies that have been caught up in the fallout in recent months: The factors behind the cannabis retrenchment are numerous. The cannabis industry layoffs and retrenchment have affected plant-touching companies large and small as well as tech businesses such as Akerna of Colorado, Dutchie of Oregon and delivery operator Eaze of California. The pandemic-era e-commerce boom that boosted Shopify’s business also appears to have cooled, and the Canadian company, which makes the technology that powers online stores, has laid off about 1,000 workers. Sales of Peloton bikes spiked when gyms closed and people sought fitness alternatives but the New York-based company has axed more than 4,000 jobs so far this year. The marijuana industry mirrors mainstream companies that saw similar demand and now are struggling to right-size their businesses. ![]()
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