Ayr Wellness, a once-rising star in the cannabis sector, is now under pressure. The Miami-based multistate operator is closing large-scale cultivation operations in Massachusetts and Nevada, affecting over 200 employees, as it scrambles to offload assets and manage mounting debt.
This latest move follows last week’s news of a broader sell-off, underscoring just how volatile the legal weed industry has become for even the biggest players.
Massachusetts Facility to Close Doors This Autumn
The first wave of layoffs is expected in Milford, Massachusetts.
Ayr currently runs a 217,800-square-foot cannabis cultivation facility there, employing 157 workers. The company filed a notice with the state on July 31, warning that these jobs could be cut as soon as September 29. That timeline aligns with federal WARN Act requirements mandating 60 days’ notice for large-scale layoffs.
The Worcester Business Journal broke the story first, citing internal communications and state records. That facility was once considered a crown jewel in Ayr’s East Coast operations. Now, it’s a symbol of the growing pain the company—and the industry at large—is experiencing.
Nevada Not Spared Either
Nevada’s cannabis sector has seen its fair share of ups and downs. Ayr’s exit just adds another dent.
In a separate filing, Ayr confirmed plans to close one of its cultivation sites in Nevada, affecting dozens of workers. The total number of layoffs across both states is expected to exceed 200.
The company has not released an official headcount for the Nevada closures. Still, insiders say it includes trimming down not just growing operations, but also some administrative and logistics roles tied to those sites.
Ayr’s public statements have been vague so far, focusing on “streamlining” and “sustainable restructuring.” It’s business-speak, but the writing’s on the wall.
Crushing Debt Piles Up
Ayr’s financial challenges are not new—but they’ve now become impossible to ignore.
In recent filings, the company reported over $400 million in outstanding liabilities. While Ayr has made some efforts to refinance and delay repayments, interest alone has been eating into profits, making some operations financially unviable.
Here’s a quick look at Ayr’s current financial pressures:
| Category | Estimated Value (USD) |
|---|---|
| Total Debt | $403 million |
| Annual Interest Paid | $48 million |
| Q2 2025 Revenue | $118 million |
| Q2 2025 Net Loss | $24 million |
What Went Wrong?
It’s not just Ayr. The wider cannabis sector is feeling squeezed.
Over-expansion during the “green rush” of 2018–2021 left many operators top-heavy. They built big, hired fast, and bet on federal legalisation arriving sooner rather than later. That didn’t happen.
Now, operators like Ayr are trimming the fat to stay afloat.
• Supply is up, demand is flat, and wholesale prices are down—especially in saturated states like Massachusetts.
• Access to capital has dried up, making debt financing riskier and more expensive.
• Regulatory uncertainty continues to cloud long-term business planning.
Add to that the fact that cannabis is still federally illegal, which means MSOs can’t deduct many standard business expenses from their federal taxes due to IRS Code 280E.
Silence From the Top, So Far
Interestingly, Ayr hasn’t put out a full public statement on the layoffs yet. That silence is making investors nervous.
As of this week, AYRWF (the company’s over-the-counter stock) is trading down nearly 9% from last Friday. It’s hovering around $1.52—a steep fall from its $30+ highs in early 2021.
A brief investor note last week acknowledged “ongoing cost rationalisation” efforts, but didn’t mention the Massachusetts or Nevada closures by name.
Insiders say the company may be trying to secure additional asset sales before announcing further restructuring plans.
Meanwhile, affected employees are in limbo, with many scrambling to find new work before the end of September.
Industry Reaction: “Not Surprising, But Still Brutal”
Industry watchers aren’t exactly shocked by the news.
“This is the kind of shakeout we’ve been expecting,” said Emily Paxson, senior analyst at Green Leaf Intelligence. “Ayr expanded fast and took on a lot of risk. This is them finally paying the bill.”
But while analysts see it as inevitable, that doesn’t soften the blow for workers.
In online cannabis forums, several Ayr employees have voiced frustration over the lack of clear communication. Others say they were caught completely off guard and only found out through local news reports.
Not the best look.
Some Massachusetts cannabis operators are reportedly looking to absorb talent from the Milford facility. Whether those hiring efforts will match the scale of the layoffs remains unclear.
What’s Next for Ayr?
Ayr is clearly in retreat mode. And the question now is—how much more can they cut?
The company still holds licenses and operations in New Jersey, Florida, and Pennsylvania, among others. But sources close to the company say nothing is off the table, and more closures could come before year’s end.
CEO David Goubert has been relatively quiet through this latest round of cost-cutting. A formal statement is expected before the company’s next earnings call.
Until then, the industry will be watching closely to see whether Ayr Wellness is shrinking its way to survival—or simply buying time.