Leafly lays off 56 workers, about 20% of the company

A Leafly announced that 56 of its workers are leaving the company's staff, in order to “guarantee the long-term health” of its structure. The company's restructuring could now cost Leafly around half a million euros, but could represent a savings of 16 million.

The US company issued a release with the announcement of a reduction in operating costs, having also disclosed some operating results for the year 2022. The company's restructuring involves the departure of 56 employees from the company's staff - which cost approximately 16 million euros per year and represent 21% of the company workers. According to the statement, the move is intended to ensure the long-term health of the company, which it expects to spend about half a million dollars on restructuring, with agreements for the layoffs of workers in the fourth quarter of 2022.

The company announced that it had carried out its cost structure in “response to changes in market conditions”, in order to promote growth opportunities with its aligned expense structure and in order to preserve capital by strengthening its financial position.

“This restructuring will help preserve our ability to respond to opportunities as this sector continues to mature and expand, and will allow us to manage our capital more efficiently,” said Yoko Miyashita, CEO of Leafly. “In addition to cutting costs, we have taken a close look at our structure to ensure that we are prioritizing the most significant parts of the business. I have great gratitude for each of our team members who helped make Leafly the world-class brand and platform it is today.”

The company also announced that Sam Martin, COO, is departing. The director will leave his duties at the company on December 31, 2022, after seven years at the company.

Leafly also shared expected revenues of approximately US$11,8 million, which represents an 8% growth over the same period last year. Regarding losses, the company remains in the red line, with losses between 5 and 6 million, calculated through an adjusted EBITDA, which does not contemplate certain parameters with confidence at this time. These items include, but are not limited to: depreciation and amortization expenses of new assets; asset depreciation; changes in the valuation of any derivatives; the evaluation and changes in share-based compensation grants; gains or losses on modification or extinguishment of debt.

The company will announce third quarter 2022 financial results on November 10, 2022