Cannabis-tech firm Weedmaps is cutting up to 25% of its employees as the industry's downturn continues

• Cannabis tech firm Weedmaps is cutting up to 25% of employees, according to a filing.
• The cuts come less than a month after former CEO Chris Beals stepped down.
• Weedmaps cut 10% of employees in August.

Weedmaps is cutting up to 175 employees, or 25% of its workforce, amid a tough stretch for the cannabis-reviews site.

The company told Insider that the majority of the cuts were made last week. Weedmaps previously laid off 10% of its staff in August, as Insider reported. Weedmaps CEO Chris Beals stepped down on November 7 and Doug Francis, a Weedmaps cofounder, is running the company on an interim basis.

"The decision to eliminate these positions was a very difficult one, but it is necessary in order to drive line of sight to profitability and positive cash flow in 2023," Francis told Insider in an emailed statement. "I very much realize the difficulty this creates for the impacted employees."

Weedmaps' stock is down over 80% this year, and the company has a market value of just $200 million — down from a high of over $1.5 billion in December 2020. Its customers, cannabis companies, have pulled back on spending as they face regulatory uncertainty, slumping cannabis sales, and a difficult economic environment.

Weedmaps lists cannabis shops on its site, allowing consumers to browse dispensaries and see reviews of marijuana products. It provides a way for cannabis businesses to engage with customers and market products.

Weedmaps is far from the only cannabis company to lay off employees in recent months. Cannabis giant Curaleaf cut over 200 jobs last week, as Insider has reported.

Weedmaps estimates that it will pay out $10.7 million in severance payments, employee benefits, and other costs related to the layoffs, the company said in a regulatory filing.