PINCONNING TWP, MI – A Michigan marijuana company is temporarily closing one of its operations, resulting in layoffs, the company confirmed late Friday, Jan. 31.

Specific numbers were not immediately available for how many employees would be laid off at Pincanna. The Pinconning Township-based operation has locations in East Lansing, Kalamazoo, Kalkaska and a 135,000-square-foot grow facility in Bay County.

However, company officials said it is temporarily closing the greenhouse portion of its cultivation operation and reducing its workforce.

“We deeply value the contributions of the members of the cultivation team affected by these actions, and we are providing support to help ease their transition,” said Robert Nusbaum, one of the company’s founding partners. “We will resume employment for as many affected team members as possible when the market conditions in Michigan improve.”

Related: These Bay, Genesee and Saginaw County companies announced layoffs in 2024

The move, officials said in a statement, comes as the Michigan cannabis industry undergoes a significant transformation “marked by oversupply and persistently low prices.”

“To navigate this challenging landscape, Pincanna has elected to take strategic action to ensure its long-term viability and success,” Nusbaum said.

Pincanna’s retail and processing operations will not be affected by the layoffs, officials said. The company will continue to grow flower for its own stores and for select retailers.

The oversupply of cannabis in Michigan has created a highly competitive and unsustainable market, Nusbaum said. Consequently, large-scale cultivators have felt financial strain.

The Michigan Department of Licensing and Regulatory Affairs collects monthly employee numbers in the marijuana industry for statistical data. The two most recent months reported show back-to-back declines in industry employment for the first time since it began keeping tabs on the numbers in October 2021.

In November 2024, employment was down by 152 employees from the prior month, and the number dropped by 312 in December 2024.

“This decision was not made lightly and we are profoundly grateful for the hard work and dedication of the affected employees,” Nusbaum said.

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