MedMen aims to cut over 20% of staff

On Friday MedMen announced a move to cut 20% of its staff and begin offloading assets.

The move comes on the heels of a landslide downward trend in publicly traded cannabis companies and on the back of MedMen abandoning a landmark deal to buy Pharmacann LLC in October.

In addition to laying off 190 workers, the company has said they will scale back marketing campaigns and materials. Part of the lay offs will result in the permanent removal of some positions as the company begins to outsource functions such as human relations.

MedMen says they aim to scale down to roughly $85 million via structural changes and reduced spending for sales and administrative efforts.

   

In the prior fiscal year MedMen reported combined marketing and general and administrative costs of $271.5 million.

In a release the company says it will begin to sell off “certain operations and licenses in states that are currently deemed not critical to the company’s retail footprint.” That comes in addition to liquidating a marijuana focused real estate holding for $14 million, and will exit various venture investments for a net return of $8 million.

MedMen’s stock has fallen 73% in the year to date.