Colorado CBD producer Mile High Labs lays off 20 workers
Mile High Labs, one of Colorado’s leading CBD producers, laid off employees this week, just months after undergoing a major expansion.
According to chief financial officer Jon Hilley, the company cut 20 positions — less than 10% of its workforce — on Thursday. They primarily were those in entry-level sales jobs. Mile High Labs employed more than 250 people before the layoff, Hilley said.
The news comes about three months after the company moved from Boulder into an $18.8 million, 400,000-square-foot facility in Broomfield, where it extracts and processes hemp-derived cannabidiol, or CBD. Hemp has negligible amounts of THC, the ingredient that gives the plant’s cousin marijuana its high.RELATED: Leading CBD producer makes big move to 400,000-square-foot facility in Broomfield
When the new facility opened, founder and chief executive officer Stephen Mueller told The Denver Post he anticipated adding another 100 workers to the company.
“We did that,” Hilley said Friday. “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.”
Despite the layoff, Hilley says Mile High Labs is “absolutely” still expanding. In 2020, it plans to add an original line of CBD products, including tinctures and topicals. Chicago-based research company Brighfield Group estimates the U.S. CBD market could reach $24.4 billion by 2025.
“The last year has proven we are the market leader in this category and we’re excited about continued growth of the category,” Hilley said.