Marijuana Business Magazine January 2020

Marijuana Business Magazine | January 2020 84 operational company I know—and most ancillary companies—don’t raise enough capital or have enough runway to get to cash-flow positive. “Have another three to six months (of capital set aside)” to cover the cost of operations, including staff salaries, Easley suggested. 4 CROSS-TRAIN EMPLOYEES. Another cost-cutting step that could save jobs down the line is to train staffers to do more than a single job, said Avis Bulbulyan, the CEO of California-based Siva Enterprises. “As the employer, cross-train a lot of employees in multiple job functions. So, as an employee, if you outgrow one job, here’s another opportunity,” Bulbulyan said. “One employee can make up two positions.” That advice is especially applicable to unskilled positions, but it also fits higher-level jobs, depending on the company and the roles that need filling, Bulbulyan said. For instance, he said, an unskilled budtender at a retail shop could also be trained to serve as a purchasing manager, or unskilled trimmers at a grow also could be taught to mix nutrients or handle clones. Not only could such overlap save a company from having to impose layoffs, it also makes the workforce more flexible. 5 LOOK FOR THIRD-PARTY CONTRACTORS. Yet another option is to avoid hiring for some positions to begin with, Rogoway said. Employing contractors is often cheaper than having to hire a full-time staffer for, say, marketing or accounting or another area that could have some crossover with other industries. That allows a company to save on expenses such as health insurance and other employee benefits. California-based MedMen Enterprises, a multistate marijuana operator, announced in November it would lay off more than 190 employees. In December, the company issued layoff notices to an additional 20% of its corporate-level employees. California distributor Flow Kana disclosed in November that it reduced its workforce by about a fifth, although the company didn’t disclose the exact number of employees involved. California-based CannaCraft, which runs several retail shops and distributes multiple well-known marijuana brands, said in November that it laid off 40 employees, or about 16% of its staff. Grupo Flor, a California company that runs multiple cannabis storefronts as well as cultivation operations, disclosed in November that it let go 30 employees, or around 35% of its workforce. Canadian cannabis producer Hexo said it laid off about 200 employees in October. California-based marijuana tech company Weedmaps announced in October it laid off more than 100 employees, or 25% of its workforce. Pax Labs, a California vape manufacturer, said in October it issued pink slips to 65 workers. California delivery technology firm Eaze said in October it laid off 36 employees, or 20% of its workforce. Embattled Canadian producer CannTrust announced in September it let go of about 180 workers, or 20% of its workforce. Canndescent, a commercial cultivator based in Desert Hot Springs, California, laid off 16 employees in September and froze hiring for an additional six positions. Below are some of the job cuts that U.S. and Canadian companies have announced in recent months: