The cannabis media landscape is facing significant challenges as companies struggle to maintain revenue amidst industry changes. Leafly, a prominent player in the cannabis space, has been adversely affected by these shifts, leading to the unfortunate decision to cut its journalism department.
CEO Yoko Miyashita’s Letter to Leafly Team
A letter from Leafly’s CEO, Yoko Miyashita, detailed the reasons behind the decision to lay off 21% of its workforce, or 41 positions. The company experienced weaker holiday sales and a slow start to 2023, resulting in clients reducing their advertising spend on Leafly’s platform.
Navigating Uncertain Times: Leafly’s New Priorities
- Building a Stronger Marketplace
To combat these challenges, Leafly is focusing on three main priorities. The first involves building a stronger marketplace that delivers consumers to the doorsteps of retail and brand partners, helping them identify what to try and buy.
- Focusing on Near-Term Revenue
Secondly, Leafly is concentrating on the areas of its business that generate the most near-term revenue. This focus will help the company remain sustainable and maintain profitability.
- Rationalizing Cost Structure
Lastly, the company aims to rationalize its cost structure, preserving cash, and ensuring sustainability as a public company by focusing on improving its path to profitability.
Sales and Content Team Changes
The new priorities will bring significant changes to Leafly’s sales and content teams. On the sales side, the company will shift from a broad-based, high-touch model to a hyper-focused approach that deepens relationships with emerging and high-value clients. This change will align customer account management, services, and support more cost-efficiently.
Content Shift: Moving Away from Journalism
In terms of content, Leafly is shifting its strategy to align with revenue-generating aspects of the cannabis marketplace. This decision means moving away from journalism and focusing more on content that drives shopping behavior and creates value for retailers and brands.
Thanking Departing Team Members
Miyashita expressed gratitude to those leaving the company, thanking them for their hard work and contributions to Leafly’s success.
Remaining Optimistic for the Future
Despite the challenging environment, Miyashita remains confident in the opportunities ahead for Leafly. By making necessary changes to their operations and sustaining the business through this difficult period, the company aims to continue providing valuable services to its partners.
