Seattle-based online cannabis marketplace Leafly Holdings Inc. (Nasdaq: LFLY) is reducing its headcount by 56 employees, or 21% of its total workforce.
The reduced headcount, announced Tuesday, will come through both layoffs and natural attrition. Leafly said in a regulatory filing the reduction would finish by the end of the year.
A company spokesperson didn't specify how many of the roles would be cut through layoffs versus attrition but said the company will have 206 employees remaining after the cuts.
“These reductions will help preserve our ability to respond to opportunities as this industry continues to mature and expand,” Yoko Miyashita, CEO of Leafly, said in a release. “In addition to cutting costs, we have taken a close look at our structure to ensure we are prioritizing the most meaningful parts of the business. I have a great amount of gratitude for each and every one of our team members who have helped build Leafly.”
Leafly said in a release the cuts were about its long-term health, and the company expects a one-time cost of about $500,000 in the fourth quarter as a result of layoffs. Along with other moves, Leafly expects to see an annual savings of about $16 million starting in 2023, but the savings are "primarily in headcount-related costs."
The company also said that Chief Operating Officer Sam Martin, who has been with Leafly since 2015, is leaving at the end of the year. He is pursuing his next move and will spend more time with family, Leafly said.
Leafly, founded in 2010, offers a marketplace for consumers to research and shop cannabis products online. In February, the company went public through a merger with a special purpose acquisition company. Miyashita was previously the company's general counsel but took over as CEO in August 2020.
In the release announcing the cuts, Leafly said it expects its third quarter 2022 revenue to be about $11.8 million, or an 8% year-over-year increase. The company is officially releasing its third quarter financial results on Nov. 10. Leafly generated $12.1 million in revenue during the second quarter of 2022.
Leafly is just the latest Seattle-based company to trim staff this year, as companies like Rad Power Bikes, Amperity and Outreach have all had layoffs. Leafly itself laid off more than 140 employees in early 2020 before Miyashita took over as CEO, but she told the Business Journal in August 2021 the company was hiring again.
