Curaleaf Holdings, a Massachusetts-based multistate operator, has announced the closure of its cannabis cultivation facility in Bellmawr, New Jersey. As a result, up to 40 employees could face layoffs. The company’s decision to consolidate marijuana cultivation operations in its Winslow facility is a reflection of the challenges faced by the cannabis industry, including tightening capital markets, compressed wholesale prices, and slowing sales growth.
Curaleaf’s Bellmawr Facility Closure
Curaleaf provided a statement to NJ.com, explaining its decision to cease cultivation in Bellmawr. The company will repurpose the location for other operations, as it consolidates production at the Winslow facility. The Winslow site has the capacity to meet New Jersey’s overall market demand, making it an ideal choice for streamlined operations.
Recent Layoffs in the Cannabis Industry
The cannabis industry has been streamlining operations and laying off hundreds of workers in response to challenging capital markets, compressed wholesale prices, and slowing sales growth in some markets. In November, Curaleaf cut 220 employees in Massachusetts and 50 in California after shuttering its Sacramento cultivation facility in August. The company did not confirm how many jobs would be affected by the Bellmawr facility closure.
Unionization Efforts at Bellmawr
According to NJ.com, workers at the Bellmawr facility were attempting to unionize with the United Food and Commercial Workers Local 360. The union filed a complaint alleging Curaleaf management had interfered with the effort three weeks ago. However, a Curaleaf spokesperson stated that the closure was not related to the union drive.
New Jersey’s Cannabis Cultivation Licenses
New Jersey regulators recently lifted a cap on cultivation licenses in the state, but aspiring growers face headwinds such as high real estate costs and capital challenges. These factors contribute to the difficulties faced by cannabis businesses like Curaleaf, as they navigate the ever-changing landscape of the marijuana industry.
