Dutchie lays off 7% of workforce, citing ‘dramatic market shift,’ in newest hashish tech firm cuts – GeekWire
Dutchie, a Bend, Ore.-based software program startup that serves hashish retailers, has laid off 7% of its workforce.
GeekWire confirmed the cuts with a Dutchie spokesperson. The corporate employs greater than 700 folks.
The cuts affected roles throughout product and recruiting groups, based on LinkedIn posts written by laid off workers. “I’m saddened, annoyed, and genuinely blindsided by this resolution,” one laid off worker wrote. “Past my frustration, confusion, and disappointment, I’m heartbroken,” one other stated.
Dutchie is the most recent tech firm to put off staff in response to the broader ongoing financial uncertainty. A number of hashish software program firms have slashed workers in latest weeks, together with Eaze and Akerna.
Dutchie was valued at $3.75 billion when it raised a $350 million Collection D spherical in October, which got here simply seven months after the startup raised $200 million. Dutchie additionally acquired Greenbits and LeafLogix earlier this yr.
The corporate serves greater than 5,000 dispensaries throughout the U.S. with e-commerce, level of sale and cost merchandise. It’s amongst a bunch of tech firms using the wave of help for marijuana legalization within the U.S., together with the passage of laws throughout a number of states. Authorized hashish gross sales grew 40% to $25 billion in 2021.
Dutchie’s backers embody D1 Capital Companions, which led the Collection D spherical, and others corresponding to Tiger International, which was featured by the Wall Road Journal on Monday in a narrative that described how the latest downturn “vaporized years of its positive aspects.”
Different backers embody Dragoneer, DFJ Development, Thrive Capital, Gron Ventures, Casa Verde Capital, Willoughby Capital, Glynn Capital, and Park West Asset Administration.
A Dutchie spokesperson supplied this assertion from Dutchie CEO and co-founder Ross Lipson, who began the corporate in 2017 along with his brother Zach.
“Like many different firms watching the dramatic market shift over the previous couple of months, we took time as a crew to fastidiously suppose via our enterprise plans to make sure we’re set as much as fulfill our mission. Happily, the hashish trade continues to be rising at a fast tempo and is positioned nicely to be resilient within the case of a broader recession.
Final week, we gathered our total crew collectively to speak an vital and tough resolution to restructure a couple of areas of the enterprise. This resolution impacts roughly 8% of the corporate’s general workforce. We’re ceaselessly grateful for everybody’s contributions to Dutchie and the hashish trade that had been impacted.
Dutchie is in a powerful place and we’re targeted on continued development. We’ll proceed to rent prime expertise and pursue development alternatives that map to our enterprise goals as a way to advance our mission to offer protected and easy accessibility to hashish whereas serving to to drive the hashish trade ahead.”