Mile High Labs Lays Off 20 Employees After Recent Expansion
Mile High Labs, a biotech company that produces CBD, recently laid off 20 employees only a couple months after experiencing a major expansion. This news came as a shock to many people, as Mile High Labs had hired over 250 people prior to these layoffs.
Is This Considered a Big Layoff?
Jon Hilley, the chief financial officer for Mile High Labs, stated that the 20 employees that were let go accounted for less than 10% of their workforce. The majority of the workers that were laid off were in an entry-level sales position, and over 250 workers were hired shortly before these layoffs occurred.
Speaking to the Denver Post, Hilley stated: “To go from 30 people to 250 people, you learn a lot about who’s going to be a really good fit for the company.”
Roughly three months ago, Mile High Labs moved from Boulder, Colorado to a facility in Broomfield, Colorado that measures an impressive 400,000 square feet and costs around $18.8 million dollars. Because of this, Mile High Labs was able to hire additional people, allowing for them to fully evaluate all of their workers and make final decisions on who was a good fit for the company.
Despite these layoffs, Hilley assured that Mile High Labs is still expanding and plans to add their own original CBD products, including tinctures and topicals, to the market in 2020.
Is This Good or Bad News for Mile High Labs?
From an employee perspective, layoffs are almost always seen as a negative thing. Although severance pay can be available at times to help with the adjustment of an economic hardship, it doesn’t make up for the loss of consistent income that enables them to live.
From a business perspective however, when layoffs are executed in a proper way, they can be very beneficial to the company. The purpose behind layoffs is to reduce the amount of loss you experience and to help eliminate redundancies throughout different departments. It is also a good way to let go of workers that may not perform well in their specific role.
Given the circumstances, it seems as though the layoff of 20 people at Mile High Labs was a decision that is truly for the better of the company. Attempting to cut their losses is evidence of their desire to expand, and they could be seeing big gains in 2020.
Before You Go
Don’t forget to check out our other CBD news, along with our CBD blog to find a plethora of information regarding CBD and its uses. Also, leave a comment in the section below and let us know what you think of these layoffs and Mile High Labs’ plan for expansion in 2020.