Another warning sign is emerging from Michigan’s legal marijuana market, and this time it is coming straight from a company shutting its doors.
C3 Industries, Inc. has announced the closure of its facility in Webberville, Ingham County, a move that will eliminate 62 jobs. The closure is scheduled to take effect on February 14, 2026.
According to the company, the decision was not sudden, it was inevitable.
C3 Industries cited a sustained decline in Michigan market conditions, pointing specifically to chronic oversupply and what it described as the looming wholesale tax, a reference to Michigan’s newly implemented 24% marijuana excise tax. Together, the company said, those pressures have rendered the facility economically unviable.
This is the part policymakers rarely talk about.
Michigan’s marijuana market was already struggling under razor thin margins, falling wholesale prices, and aggressive competition. Layering a steep new tax on top of that reality does not punish corporations in the abstract, it hits payrolls, production floors, and local communities first.
Sixty two workers in Webberville are now counting down the days to unemployment.
And one has to wonder, how many more are coming?
As more operators reassess their balance sheets under the weight of the new tax structure, closures, consolidations, and layoffs are likely to accelerate, particularly among facilities that are already operating on the edge. The tax was pitched as a revenue generator. In practice, it is increasingly looking like a job killer.