SOUTH JERSEY (KYW Newsradio) — Cannabis company Curaleaf is laying off nearly 50 workers at its facility in Winslow Township, Camden County, and state regulators are not happy about it.
Curaleaf blames the layoffs on the state’s slow growth, claiming the state led the company to believe that more than 35 dispensaries would be open by now. There are currently three Curaleaf stores open for recreational use in New Jersey, and another three just for medical cannabis.
The business has been cranking out more product than can be sold due to the low number of open stores. In a statement, officials say market realities are compelling them to scale back.
Hugh Giordano with UFCW Local 360 said the issue of over-production isn’t unique.
“It’s not only happening in New Jersey. It’s happening all over the country and in Canada,” he said.
The union is working with the company to secure different roles for affected employees. “It would be an opportunity for workers to keep their paycheck and benefits,” Giordano added.
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Regulators believe the market is growing sustainably, and they have already approved 191 new annual licenses, with more coming by the end of the year.
As with all kinds of businesses, the New Jersey Cannabis Regulatory Commission says, performance against increased competition and customer choice will determine success.
Curaleaf closed a facility in Bellmawr in March and nearly lost its license before an emergency meeting restored it.
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