The events of the week of Nov. 4th – Nov. 10th included a few ‘Wow!’ moments and some ‘Oh my!’ moments as well. Leafly laid off employees amid new leadership, a study said most CBD products are improperly labeled, and Detroit voters approved pro-medical marijuana laws.
Here’s a closer look at some key developments in the cannabis industry over the past week.
Leafly prunes workforce
Layoffs are unusual in the rapidly expanding marijuana industry.
That said, cannabis consumer website Leafly’s announcement that it laid off 15 employees is a sign the MJ industry is maturing, according to one industry insider.
“This is that grow-up moment,” said Nic Easley, CEO of Denver-based 3C Consulting.
The layoffs – about 13% of the company’s total workforce – indicate that Leafly is willing to make serious moves to trim parts of the business that are hindering the Seattle-based company, according to Easley.
“If something’s gangrene, sometimes you have to cut it off,” he noted.
Leafly now has about 100 employees.
It’s common for a business to get to 50 or 100 staffers and take a deep look under the hood to determine what’s working and what’s not, Easley said.
Instead of continuing with the status quo, the company could be preemptively saying it needs to make a change, he added.
The pruning is likely painful in the interim, but it could help Leafly achieve its long-term goals.
Easley doesn’t think the layoffs are indicative of a major problem within the industry or Leafly being concerned about competition.
“It’s more something normal that we see when companies are moving forward and start to approach that middle-market space,” Easley said.
He also believes the company’s decision to hire tech entrepreneur Chris Jeffery to succeed Drew Reynolds as CEO is par for the course.
Easley said it’s possible that Jeffery – who founded food service tech company OrderUp – is more attuned to running companies of a similar size and scope.
Leafly’s CEO choice also suggests the company is looking for a more seasoned leader than what it might find in the cannabis industry, Easley added.
“It’s not indicative of something majorly wrong with the company,” he said.
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Originally posted by Bart Schaneman, Kristen Nichols and John Schroyer for mjbizdaily.com