Columbia Care, a multistate marijuana business headquartered in New York, is cutting 25 percent of its corporate workforce as part of a bigger attempt to save money, speed up growth, and boost efficiency.
A press release states that the firm has merged its agricultural activities in the states of California, Colorado, and Pennsylvania.
For financial reasons, Columbia Care closed three stores in Colorado and one in California in December and informed 73 employees in Pennsylvania of their impending layoffs.
In March of this year, Cresco Labs announced that it would purchase Columbia Care in an all-stock transaction valued at $2 billion. CEO Nicholas Vita has stated that the company hopes to turn a profit following the acquisition.
The sale of assets in multiple states, including those that rapper and business mogul Sean “Diddy” Combs agreed to purchase last year, is necessary for the transaction to close.
The deal was supposed to close last month, but the postponement to March has raised doubts about its success.
To be one of the greatest firms in the sector is a top priority for Vita, and the company is looking forward to the upcoming merger with Cresco Labs and providing updates as the transaction progresses.
In the past year, hundreds of workers have been let go from cannabis MSOs and software companies.
While Columbia Care’s revenue increased by 2.4% between the second and third quarters of this fiscal year, the company still lost $38.3 million.
Columbia Care (CCHWF) stock was trading at 73 cents on Thursday’s over-the-counter exchanges.