California marijuana marketing giant Weedmaps announced Wednesday it laid off 25% of its workforce, blaming the slow rollout of recreational marijuana markets in California and Massachusetts and a dwindling pool of outdoors funding.
The job cuts – disclosed by Weedmaps CEO Chris Beals by way of Twitter – quantity to extra than 100 persons. They influence the company’s news division and other departments.
A supply familiar with Weedmaps’ internal decisionmaking said more than 50% of the company’s remaining workforce will be focused on engineering, item improvement and design and style to assistance its software program and compliance portfolios.
The job cuts come at a important time for Weedmaps, which has pledged to take away advertisements from its on-line platform for unlicensed marijuana shops and delivery solutions, specifically these in California. The move is anticipated to outcome in the loss of income for Weedmaps.
But the supply close to the corporation, who requested anonymity, stated the job cuts had been not in response to that circumstance.
In his written on-line statement, Beals stated the Irvine-primarily based corporation created the layoffs for the following motives:
- New cannabis markets such as Massachusetts have been slow to create.
- 75% of California’s cities and counties are not permitting cannabis retail sales.
- Tech and cannabis capital markets “have knowledgeable tightening” this year, limiting the capability to leverage outdoors capital to fuel development.
Conversely, Beals also wrote that the corporation has elevated its consumer base by extra than 50% year-to-date and effectively launched other offerings across various markets.
“This fast development calls for us to be prudent in how we deploy capital and make certain that we can nimbly attack new markets and new software program possibilities as they arise,” Beals wrote.
According to the supply close to Weedmaps, most of the company’s income development comes from outdoors California. And most of the company’s quickest-expanding sources of income had been restricted to licensed operators.
Nowadays was my toughest day through my tenure as CEO. A note on the departures we had now from the Weedmaps loved ones. We will continue to develop and drive forward. https://t.co/5Gamx9vuFP
— Chris Beals (@chrislbeals) October 16, 2019
Weedmaps came below fire final month when California Gov. Gavin Newsom made clear through a news conference that the corporation will be held to account if it does not stick to by way of on its pledge to drop all unlicensed retailers from its website by the finish of the year.
The challenge dates to final year.
In February 2018, Weedmaps was targeted with a cease-and-desist letter by the California Bureau of Cannabis Handle (BCC) and refused to comply, citing legal protection from the federal Communications Decency Act and arguing the BCC had no jurisdiction more than the corporation simply because it didn’t hold a state cannabis license.
Bart Schaneman can be reached at [email protected]