Dutcha Bend, Oregon-based software startup that serves cannabis retailers has laid off 7% of its workforce.
GeekWire confirmed the cuts with a Dutchie spokesperson. The company employs over 700 people.
The cuts affected roles in the product and recruiting teams, according to LinkedIn posts written by laid-off employees. “I am saddened, frustrated and truly blindsided by this decision,” said a terminated employee wrote. “Beyond my frustration, my confusion and my disappointment, I am heartbroken” another said.
Dutchie is the latest technology company dismiss workers in response to the ongoing broader economic uncertainty. Several cannabis software companies have cut staff in recent weeks, including Eaze and Akerna.
Dutchie was valued at $3.75 billion when it raised a $350 million Series D round in October, which came just seven months after the startup raised $200 million. Dutchie also acquired Greenbits and LeafLogix earlier this year.
The company serves more than 5,000 dispensaries across the United States with e-commerce, point-of-sale and payment products. It is part of a group of technology companies straddling the wave of support for the legalization of marijuana in the United States, including the passage of laws in several states. Legal Cannabis Sales grew by 40% to $25 billion in 2021.
Dutchie’s backers include D1 Capital Partners, which led Series D, and others such as Tiger Global, which was featured by the the wall street journal Monday in an article describing how the recent downturn “vaporized years of its gains.”
Other backers include Dragoneer, DFJ Growth, Thrive Capital, Gron Ventures, Casa Verde Capital, Willoughby Capital, Glynn Capital and Park West Asset Management.
A Dutchie spokesperson provided this statement from the CEO and co-founder of Dutchie Ross Lipsonwho launched the company in 2017 with his brother Zach.
“Like many other companies that have watched the dramatic market shifts over the past few months, we have taken the time as a team to think carefully about our business plans to ensure we are ready to deliver on our mission. Fortunately, the cannabis industry continues to grow at a rapid pace and is well positioned to be resilient in the event of a broader downturn.
Last week, we brought together our entire team to communicate an important and difficult decision to restructure a few areas of the company. This decision concerns approximately 8% of the company’s overall workforce. We are forever grateful for the contributions of everyone to Dutchie and the cannabis industry that has been impacted.
Dutchie is in a strong position and we are focused on continued growth. We will continue to hire top talent and seek growth opportunities that align with our business goals to advance our mission to provide safe and easy access to cannabis while helping to drive the cannabis industry forward.