Immigration enforcement raids cost Central Coast cannabis company $26 million
November 18, 2025
Juveniles found in cannabis facility
By KAREN VELIE
Immigration enforcement raids at two Central Coast cannabis farms resulted in $26 million in lost revenue, with a 100,000 pound reduction in harvested and dried cannabis, Glass House Farms reported on Nov. 12.
“In light of the events of this past summer we made the hard decision to completely revamp hiring and staffing practices for both employees and third-party labor contractors,” Glass House’s CEO Kyle Kazan said in a press release. “As anticipated, these actions resulted in temporary worker shortages as well as a planned scaled back in new planting and production.”
On July 10, federal agents served criminal search warrants at Glass House grow sites in Carpinteria and Camarillo, which led to the arrest of 361 illegal immigrants including convicted rapists, burglars and child molesters. During the raids, at least 14 migrant children were “rescued from potential exploitation, forced labor, and human trafficking,” according to the U.S. Department of Homeland Security.
Cannabis businesses in California are strictly regulated, including requirements that workers undergo criminal background checks. Convicted criminals and juveniles are not permitted to work in the cannabis industry.
A federal investigation into immigration and potential child labor violations by Glass House is ongoing. At this time, there have been no charges filed against Glass House or its executives.
Glass House stock was trading at $5.94 a share before the raid, which fell to $4.82 afterwards. Amid positive reports, the stock surged to $9.40 on Oct. 15.
Following a Nov. 12 earnings call that noted the losses, the stock fell to $5.41 on Nov. 18.
Shortly after the raids, in a post on X, Glass House management said they do not violate hiring requirements or hire minors.
“Glass House has never knowingly violated applicable hiring practices and does not and has never employed minors,” according to the post. “We do not expect this to affect operations moving forward.”
Even though Glass House suffered loses in predicted revenue in the third quarter, the company forecasts growth in cannabis cultivation moving forward:
- Third quarter results reflect temporary planned reductions in new planting and wholesale production.
- By year-end 2025, the company will have the most cannabis acreage planted in its history.
- Company remains on track to return to full production at existing greenhouses in the first quarter of 2026.
- Previously announced $95 per pound of biomass full year production cost target remains intact.
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