Curaleaf closing cannabis grow facility in New Jersey, laying off workers

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Massachusetts-based multistate operator Curaleaf Holdings is shuttering its cannabis cultivation facility in Bellmawr, New Jersey, and could lay off up to 40 workers.

All of Curaleaf’s marijuana cultivation operations will be consolidated at the company’s Winslow facility, according to a statement supplied to NJ.com.

“Curaleaf is phasing out cultivation at our Bellmawr, New Jersey location to meet current business needs, and will utilize that location for other operations at this time,” the statement noted.

“This allows us to consolidate our production of key platforms with our Winslow facility and will streamline processes to increase output.

“Winslow has the capacity to support New Jersey’s overall market demand.”

The marijuana industry has been streamlining operations and laying off hundreds of workers in the past year in response to challenging capital markets, compressed wholesale prices and slowing sales growth in some markets.

Curaleaf cut 220 employees in Massachusetts in November and 50 in California after shuttering its Sacramento cultivation facility in August.

The company did not confirm how many jobs would be affected by the Bellmawr facility closure.

According to NJ.com, workers at the Bellmawr facility were trying to unionize with the United Food and Commercial Workers Local 360.

The union filed a complaint alleging Curaleaf management had interfered with the effort three weeks ago.

A Curaleaf spokesperson said the closure wasn’t related to the union drive.

New Jersey regulators recently lifted a cap on cultivation licenses in the state, but aspiring growers are facing headwinds such as the high cost of real estate and capital.