Seattle-based marijuana commerce platform Leafly will eliminate 56 jobs, or 21% of its workforce, to save approximately $16 million beginning in 2023.
As a result of the layoffs, the company will incur a one-time cash restructuring charge of $500,000 in the fourth quarter of 2022, according to a Tuesday news release.
“These reductions will help preserve our ability to respond to opportunities as this industry continues to mature and expand, and allow us to more effectively manage our capital,” Leafly CEO Yoko Miyashita said in a statement.
“In addition to cutting costs, we have taken a close look at our structure to ensure we are prioritizing the most meaningful parts of the business.”
Leafly announced a partnership earlier this week with food delivery app UberEats.
Under the deal, Toronto shoppers can order cannabis products from a retailer through the app to be delivered by a licensed store employee.
The company also released preliminary results for the third quarter of 2022:
- Revenue is projected to be roughly $11.8 million, a year-over-year increase of 8%.
- Adjusted interest, taxes, depreciation and amortization (EBITDA) loss is projected to be $5 million-$6 million.
The company’s full third-quarter results will be available after the markets close Nov. 10.
Shares of Leafly (LFLY) on the Nasdaq exchange were up 23% on Wednesday, to 70 cents.