KushCo Holdings, a cannabis company specializing in ancillary products such as packaging, on Thursday announced that this month it laid off 49 employees, as the California company’s CEO noted that “the COVID-19 pandemic creates ever-increasing uncertainty in the cannabis industry.”
The layoffs will save the company about $4 million, according to a company news release.
Since last September, the company has cut its workforce by about 50%, saving it roughly $12 million a year, according to the release.
The company also announced it is making changes to its leadership team and will focus on serving larger companies, such as marijuana multistate operators, rather than smaller clients.
In addition to the layoffs and focusing on serving MSOs, CEO Nick Kovacevich said in a statement that KushCo ‘s actions are intended to “significantly reduce our overhead” and include:
- Downsizing the company’s warehouse footprint.
- Reducing inventory.
The company said its large “core” customers generated $52 million, or 80% of its revenue, in the first half of its fiscal 2020.
KushCo also announced that Stephen Christoffersen, executive vice president of corporate development, has been named the new chief financial officer.
He replaces the current CFO, Christopher Tedford, who will be leaving the company on April 10.
KushCo trades on the over-the-counter exchange as KSHB.
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Written by John Rebchook.
View the original article at here.
Marijuana Business Daily