It's says there current lead time is 3 weeks... I ordered a Black Ice holster 4 weeks ago and it still hasn't shipped.

I emailed CS and got a reply saying it still isn't ready for shipping and I'll be notified as soon as it is.
What gives? Did they let go half of there work force or something?

When I've ordered from them before. You've got to call them and be patient.
Blade-Tech is about 30 min from my house and I've done plenty of business with them. Normally they are spot on with their lead times but I have had one instance when they took forever. If you call and ask to speak with either Dave or Aaron, they should be able to get you taken care of. Dave is the production manager but he is often times out on the road for the company. Aaron is his lead. Don't give up on them yet. They make great gear. To give you a rundown of what I own from them..... IWB Nano for G34 w/light, IWB Nano G22 no light, X26 taser holster, 2 AR mag pouches, their dop leg system, Glock pistol mag pouches, and two of their modular platform base sets. Let me know if I can be of further help.