Eaze reportedly lays off 36, gets a new CEO
We heard a little while ago that cannabis delivery service Eaze was backing off some of its expansion plans (even as it was hoping to build a business accelerator), and now it looks like that move wasn’t quite enough to avoid disasters. According to Cannabis Now, the company has laid off 36 people, about 20% of its total employees, and it’s also changing CEOs. Jim Patterson is out (though he’ll remain on the board of directors), and COO Rogelio Choy is taking over.
The layoffs were described as a need to realign within the company, and there was reportedly an all-hands meeting about it today. The hits just keep coming for Eaze — the company is also involved in a legal battle with a Canadian company called DionyMed, with DionyMed claiming that Eaze was fraudulently processing credit card payments, and Eaze claiming that DionyMed was trying to undercut the American market, and even poaching Eaze’s employees. That case is still pending, so we’ll have to see how those allegations land.
Not good news for Eaze all around. Cannabis companies in general right now are trying to size up as quickly as possible, but the legal situation, especially in the US, means that the market that they’re trying to pull revenue from is still developing. If companies like Eaze can’t balance caution with the need to grow, we’re likely to see more stories like this even before the cannabis market reaches the full US. Executives and CEOs need to be extremely careful right now — they certainly need to expand and try to claim as much of the legal market as possible, but they also need to grow carefully, and navigate these sometimes dangerous pre-legalization waters..