One Colorado’s biggest chains of cannabis shops, this past Wednesday laid off more than 60 employees that’s about 45% of the company’s workforce, according to owner Shawn Phillips.
The marijuana layoffs are identified to be the biggest in Colorado’s 16-month recreational era. Phillips own nine marijuana shops in Colorado, all of which are part of the Strainwise-branded network, and he called the cuts “drastic” but “temporary” in a letter he wrote to employees obtained by The Cannabist.
“We’ve been working on putting together this staff for the last four or five years, Phillips stated, “and we had some really good people who are passionate about the business and who wanted to continue on. Hopefully, these layoffs are temporary.”
About 80 percent of the layoffs affected employees in Phillips growing facilities, he stated. His 9 marijuana stores which include Denver Stores The Haven, The Retreat, The Shelter as well as others in Central City, Idaho Springs, Rifle and Wheat Ridge will keep their doors open for business.
“All of these stores are still up and operating,” stated Erin Phillips, Shawn’s wife and president of Strainwise,”Being that this industry is small, I didn’t want people to think that the stores weren’t up and operating. We’re going to continue to help Shawn and all of his entities.”
The result of people being fired is due to complex licensing problems with the state’s Marijuana Enforcement Division, Shawn Phillips stated. In looking to grow his total marijuana cultivation square footage, Phillips applied with the MED for another grow license for his not yet up and running Nome Street cultivation.
“From a business standpoint we anticipate having those licenses issued back in January, Shawn Phillips stated.
‘We have a cultivation facility that we have put a large amount of money into.”
