Valley marijuana operator reduces nationwide staff amid mounting losses

Posted at 10:38 AM, May 21, 2020
and last updated 2020-05-21 13:38:09-04

Steve White has one goal this year: Returning to profitability.

The founder and CEO of Tempe-based Harvest Health & Recreation Inc. has cut $24 million in costs so far this year, including layoffs and slashing operational expenses.

"Last week, as part of an ongoing effort to rightsize the organization, we are continuing to reduce ongoing operational expenses," White told analysts in a May 20 first quarter earnings call.

That includes a reduction of personnel across all levels of the organization, he said.

Christine Hersey, director of investor relations for Harvest, said the company reduced its workforce by "a small amount," but said those exact details are not being made public at this time.

Harvest Health has about 1,000 employees, with about half of those in Arizona.

The cannabis company reported a net loss of $19.99 million on revenue of $45 million for the first quarter ended March 31, compared with a net loss of $20.05 million on $19.24 million in revenue for the first quarter of 2019.

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