Culver City, California-based MedMen Enterprises, a large cannabis retailer, has announced a restructuring plan that is specifically targeted at generating an operating profit by the end of 2020. Unfortunately, the company’s cost cutting initiative will result in a reduction in force of 190 employees, selling “non-core” assets, delaying expansion opportunities. Approximately twenty-percent of the layoffs will be at the corporate level with the remainder being in retail operations.
According to MedMen CEO Adam Bierman, We have a clear plan to increase our market share, while at the same time enhancing our margins and reducing our corporate overhead. We must unlock our operating leverage and bring the company to positive EBITDA. We believe this decision is in the best interest of our company as we position ourselves for growth in the years ahead.”
While one might consider initiatives to reduce or eliminate restrictions on selling marijuana and other cannabis-related products as a positive force, the opportunity is counterbalanced by greedy politicians , restrictions on retail locations, crippling tax policies, banking restrictions, and worst of all – an underground marketplace fueled by a surplus of product and sold by independent entrepreneurs (aka criminals) who have few overhead costs.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?