Multistate marijuana operator 4Front Ventures on Monday said it has slashed its corporate workforce by almost 40% and cut the number of employees at its recreational and medical cannabis stores by almost 45%.
The company did not release the number of employees who lost their jobs.
The cuts, which took place over the past four months, are expected to save the Phoenix-based company $7 million to $8 million annually.
The company also said it promoted Leo Gontmakher to CEO. He had served as the company’s chief operating officer.
Before joining 4Front, Gontmakher was COO at Cannex Capital Holdings, a Canadian marijuana company that merged with 4Front in July in a deal valued at almost $500 million.
Gontmakher said in a statement that 4Front’s workforce reduction was necessary and there “are still more efficiencies to be achieved.”
He replaces Josh Rosen as CEO. Rosen will serve as 4Front’s executive chair.
The company also announced it:
- Is delaying the launch of its marijuana manufacturing facility in Commerce, California, saying that the state’s adult-use marijuana market faces “challenging conditions” and has been even before the COVID-19 pandemic.
- Sold its PHX Interactive subsidiary, which managed 4Front’s Mission North Mountain MMJ dispensary in Phoenix, for $6 million in cash.
The company is considering “divesting additional noncore assets,” Rosen said in a statement.
With marijuana operations in eight states, 4Front also plans to “meaningfully expand” its cultivation and manufacturing facilities in California, Illinois and Massachusetts, Gontmakher said.
The company trades on the Canadian Securities Exchange as FFNT and on the U.S. over-the-counter markets as FFNTF.
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