California marijuana advertising giant Weedmaps announced Wednesday it laid off 25% of its workforce, blaming the slow rollout of recreational MJ markets in California and Massachusetts and a dwindling pool of outside funding.
The job cuts – disclosed by Weedmaps CEO Chris Beals via Twitter – amount to more than 100 people. They affect the company’s news division and other departments.
A source familiar with Weedmaps’ internal decisionmaking said more than 50% of the company’s remaining workforce will be focused on engineering, product development and design to support its software and compliance portfolios.
But the source close to the company, who requested anonymity, said the job cuts were not in response to that situation.The job cuts come at a key time for Weedmaps, which has pledged to remove ads from its online platform for unlicensed marijuana shops and delivery services, particularly those in California. The move is expected to result in the loss of revenue for Weedmaps.
In his written online statement, Beals said the Irvine-based company made the layoffs for the following reasons:
- New cannabis markets such as Massachusetts have been slow to develop.
- 75% of California’s cities and counties are not allowing cannabis retail sales.
- Tech and cannabis capital markets “have experienced tightening” this year, limiting the ability to leverage outside capital to fuel growth.
Conversely, Beals also wrote that the company has increased its consumer base by more than 50% year-to-date and successfully launched other offerings across multiple markets.
Published: October 16, 2019
Founder & Interim Editor of L.A. Cannabis News