Multistate cannabis operator MedMen reveals another round of layoffs

Vertically integrated marijuana company MedMen, one of the most high-profile cannabis retailers in the U.S., announced more layoffs on Wednesday.

“This week, the company provided layoff notices to an additional 20% of its corporate-level employees,” MedMen said in a news release.

“In total, over the past 30 days, the company has strategically reduced its corporate headcount by over 40%, representing approximately $20 million in annual salary-related savings.”

MedMen’s downsizing Wednesday follows November news that the California-based company was slashing 190 jobs to shore up its bottom line and adds to the list of cannabis companies that have recently let workers go amid falling stock prices and a lack of outside funding.

It wasn’t immediately clear how many MedMen employees lost their jobs in the company’s latest downsizing, but the November layoff announcement included 80 workers at the corporate level. As of the end of October, MedMen had roughly 1,300 employees.

The news was part of a release that highlighted pivots MedMen has made to its financial situation, along with updated corporate governance strictures.

In another move, MedMen co-founder Andrew Modlin is handing his Class A Super Voting shares to board chair Ben Rose for a year. That gives Rose 50% control of the company, noted Marijuana Business Daily analyst Craig Behnke.

MedMen CEO Adam Bierman said in the release the moves “position MedMen for improved, long-term growth.”

The company is projecting between $225 million and $245 million in revenues for 2020, according to the release.

MedMen owns or operates marijuana retail stores in Arizona, California, Florida, Illinois, New York and Nevada.

The company trades on the Canadian Securities Exchange as MMEN and on the over-the-counter markets as MMNFF.

John Schroyer can be reached at [email protected]

2 comments on “Multistate cannabis operator MedMen reveals another round of layoffs
  1. Michael Spangler on

    However, the two CEOs won’t apparently give back any of the $10 Million bonus packages that came from retain investors pockets. This company clearly does not have the Wellness industry ethos.

    Reply
  2. William Fowler on

    As can be readily seen from MedMen layoffs, the initial valuations that promoted investors to buy this stock has been far overpriced. Many analysts continue to promote the idea that valuation must be on the basis of EBIT, but in reality this is a false narrative. Any investor must recognize the extent that the IRC 280E issue has on federal taxation. If a cannabis touching business is paying effective federal tax rates of 70% or more…..where do you find the profits for investors? Until, investors wake up to the fact of false narratives, for valuation purposes, then these same investors will continue to reap the rewards of falling stock prices.

    Reply

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