In what is beginning to feel like a case of deja vu, Oregon-based cannabis tech company Dutchie is the latest in recent weeks to lay off a percentage of its employees citing a sudden and dramatic market shift. The company, which employed over 700 people, slashed 8% of their product and recruiting teams in a move that reportedly, employees never saw coming.
Dutchie CEO and Co-Founder Ross Lipson had this to say about the sudden developments:
Last week we gathered our entire team to communicate an important and difficult decision to restructure a few areas of the business. The decision impacts approximately 8% of the company’s overall workforce. We are forever grateful for everyone’s contributions to Dutchie and the cannabis industry that were impacted…
Dutchie is considered one of the leading cannabis tech companies in the industry, with more than 5000 dispensaries across the US that utilizes their services for point-of-purchase and payment products intended to streamline the dispensary experience for customers.
The news follows suit of similar cannabis tech companies such as Eaze, who laid off 25 employees from their live ops and engineering team, and Akerna who not only laid off employees but whose executive leadership agreed to “a 25% reduction in salary to help support the company’s cost-saving initiatives” per a statement released by Akerna in late May.
Three canna-tech companies, including Dutchie who was once called a ‘cannatech unicorn’ in less than a month, is more than a trend. It is a predictive pattern that illuminates a very real truth. That while cannabis itself seems, thus far, recession-proof — the tech industry that quickly swooped in to capitalize on cannabis, is not.
Chicana journalist, editor, educator, and organizer in Sacramento whose sole focus is to shed light on stories on our most impacted and marginalized communities, but even more importantly, for those stories to humanize those normally left out. She is an Ida B Wells Investigative Journalism Fellow 2022 Finalist, a member of the Parenting Journalists Society, and has bylines in The Courier, The Sacramento Bee, The Americano, Submerge Magazine among others.