WM Technology, parent company of Weedmaps, a technology firm working in the cannabis industry, is cutting its workforce.
According to an SEC filing, the company is laying off 175 employees, representing about 25% of its total workforce.
The company said the decision was based on cost-reduction initiatives intended to reduce operating expenses and “sharpen focus on key growth priorities.”
Weedmaps expects to incur charges of approximately $10.7 million in connection with the job cuts.
The company said those charges will be reflected in its fourth quarter results and that the job cuts will be completed in the first quarter of 2023.
The job cuts come after last month Weedmaps CEO Chris Beals stepped down amid net losses.
Several cannabis companies have turned to layoffs during a period of economic uncertainty in the industry.