WM Technology Inc. MAPS recently cut 25% of its workforce, or 175 employees.
The layoffs come on the heels of Weed Maps CEO Chris Beals' stepping down on Nov. 7. Doug Francis, a WM Technology co-founder, is now running the company on an interim basis.
"The decision to eliminate these positions was a very difficult one, but it is necessary in order to drive line of sight to profitability and positive cash flow in 2023," Francis told Business Insider. "I very much realize the difficulty this creates for the impacted employees."
These cost-saving measures follow the third quarter financial report which revealed a net loss reaching $10.5 million, compared to a net income of $49.2 million in the same quarter of 2021, and sequential drop in revenue of 13%.
Customers are also struggling due to heavy regulations, plummeting weed prices and ongoing lack of business access. Weed Maps, as a result, pulled back spending.
The company said in a regulatory filing that it will pay out $10.7 million in severance payments, employee benefits, and other costs related to the layoffs. However, it did not reveal what are the projected annual cost savings.
WM Technology is not the only cannabis company cutting staff. Recently, Curaleaf Holdings CURLF laid off around 220 employees; Leafly LFLY fired 21% of its workforce in October, claiming annual savings of $16 million; The Flowr Corp FLWPF cut 40% of its workforce in an effort to save the company from bankruptcy; Aurora Cannabis ACB cut of 12% of its global workforce, planning to result in cost savings worth up to $69 million; and Dutchie laid off 7% of its staff in June.
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