Arizona-based multistate cannabis operator Harvest Health & Recreation revealed that it recently cut $24 million in expenditures – including laying off an undisclosed number of workers – in an effort to “rightsize” the company’s operations.
According to the Phoenix Business Journal, Harvest disclosed during a May 20 earnings call that a “small amount” of the company’s roughly 1,000 staffers have been let go and that many acquisition deals have been suspended to cut costs.
Harvest, which has a marijuana footprint in eight states, reported a net loss of just under $20 million against revenues of $45 million for the first quarter of 2020. That’s a much-improved performance over the fourth quarter of 2019, when Harvest lost $88.9 million.
CEO Steve White told the Business Journal that 80% of Harvest’s expenditures throughout 2020 – likely to total $10 million-$30 million on top of the $15 million the company spent in the first quarter – will focus on four key markets: its home base of Arizona as well as Florida, Maryland and Pennsylvania.