California-based cannabis advertising giant Weedmaps said it has laid off about 10% of its workers because of a widespread slowdown in the U.S. marijuana market.
“Given the unique macro headwinds we saw facing cannabis markets amid broader headwinds to the economy this last quarter, we believed the prudent approach was to plan more conservatively for the coming quarters,” Weedmaps CEO Chris Beals said in a statement to MJBizDaily confirming the layoffs.
In an internal memo dated Aug. 4 that was first reported by Business Insider, Beals said that about 10% of its 606 staffers would be let go in light of:
- Market contractions in California, Colorado and Oklahoma.
- Increasing gas prices.
- The likelihood of a recession.
“Though difficult,” Beals said in his statement, “we believe this restructure better positions the company to weather end market turbulence and operate profitably in the second half of the year.”
Weedmaps’ parent company, WM Technology, has experienced a 55% drop in its share value on the Nasdaq (MAPS) in 2022, Business Insider reported.
WM Technology went public in 2021.
The layoffs follow an MJBizDaily report that Weedmaps has resumed listing advertisements for unlicensed cannabis retailers and products in California.