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 through Twitter – quantity to far more than 100 folks. 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 style to help its software program and compliance portfolios.
The job cuts come at a essential time for Weedmaps, which has pledged to take away advertisements from its on the web platform for unlicensed marijuana shops and delivery solutions, especially 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, mentioned the job cuts had been not in response to that scenario.
In his written on the web statement, Beals mentioned the Irvine-primarily based corporation produced the layoffs for the following factors:
- 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 potential to leverage outdoors capital to fuel development.
Conversely, Beals also wrote that the corporation has improved its consumer base by far more than 50% year-to-date and effectively launched other offerings across numerous markets.
“This speedy development needs us to be prudent in how we deploy capital and make sure 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-increasing sources of income had been restricted to licensed operators.
Nowadays was my toughest day throughout my tenure as CEO. A note on the departures we had nowadays from the Weedmaps household. 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 throughout a news conference that the corporation will be held to account if it does not stick to via on its pledge to drop all unlicensed retailers from its website by the finish of the year.
The situation dates to final year.
In February 2018, Weedmaps was targeted with a cease-and-desist letter by the California Bureau of Cannabis Manage (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 due to the fact it didn’t hold a state cannabis license.
Bart Schaneman can be reached at [email protected]