The parent company of online cannabis marketing giant Weedmaps.com laid off a quarter of its staff, or 175 employees, as part of a cost-savings move, the company reported in a filing with the U.S. Securities and Exchange Commission this week.
WM Technology (Nasdaq: MAPS) estimated that the layoffs will cost the company about $10.7 million in severance packages and the like for departing staffers, just the latest sign of financial struggles for both Weedmaps and the broader U.S. cannabis industry.
“This decision was based on cost-reduction initiatives intended to reduce operating expenses and sharpen the company’s focus on key growth priorities,” the company stated regarding the layoffs.
The cuts follow the departure of longtime CEO Chris Beals last month, who stepped down from the helm after several months of the company hemorrhaging cash. The company has lost $21.8 million through the end of September 2022, according to WM Technology’s third quarter financial report.
The staff reductions also aren’t the first of the year. In August, WM Technology cut its headcount by 10%, roughly 60 workers, in response to U.S. state market contractions, rising gas prices, and an expected recession.