Two San Francisco marijuana stores announce layoffs, furloughs

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At least two California retailers have seen enough of a downturn in sales amid the coronavirus pandemic that they’ve had to reduce their workforces.

The Apothecarium and Sparc, longtime San Francisco marijuana shops, confirmed to the Bay Area Reporter that they were forced to cut staff in response to slower-than-usual sales.

Ryan Hudson, CEO of The Apothecarium, told the publication that his company recently furloughed about 20% of its staff and laid off a handful more. In total, 25 employees were affected by the cutbacks, Hudson said.

Sparc also furloughed seven staffers, eliminated some positions and cut salaries for its executive team, a company spokesman told the Bay Area Reporter.

Both retailers have experienced a sales decline during the coronavirus outbreak because not as many customers are allowed in their stores at a single time.

That restriction alone has driven down foot traffic and sales.

The downsizing by the two companies comes just after California Gov. Gavin Newsom predicted in his recent budget proposal that the state’s legal marijuana industry is in for a rough year, with expected tax revenues having been adjusted down from $590 million to $435 million for the coming fiscal year beginning July 1, according to the Los Angeles Times.

For more of Marijuana Business Daily‘s ongoing coverage of the coronavirus pandemic and its effects on the cannabis industry, click here.