Cannabis giant Leafly fired 91 employees this week in response to the coronavirus outbreak. The company said in a published statement that the downsizing will allow the company to be financially self-sufficient and still operate during the global pandemic.
The 91 employees represented 39% of the company's workforce and came from all departments of the company. In January the company cut 54 employees (at that time 18% of the workforce). The company closed its operations in Germany in February.
Since its launch in 2010, Leafly has become a leading source of cannabis information for consumers, retailers and brands. The company is a completely independent company after being spun off from Privateer Holdings in 201
"It is unbearable for us to let so many talented people go into such an industry uncertain times," said CEO Tim Leslie in a published statement. “Although Leafly continues to grow and quickly provide pick-up and delivery services to retailers and brands across North America, COVID-19 has shaken global financial markets and pushed further capital investments that we expected. This downsizing will allow us to be financially self-sufficient so that we can continue to help consumers and patients learn and order cannabis online, while providing cannabis retailers and brands with the services they need during this global crisis.
The company says that The financial crisis caused by Covid-19 has put promised investments in Leafly on hold. Therefore, the company turned to job cuts to ensure that the company could operate without external investment.
After the dismantling, Leafly Holdings employed 143 people, half of which focused on the company's online ordering technology. The company says it will continue to focus on content and tools for retailers and brands.