Canadian cannabis company Hexo Corp. has laid off about 200 workers including some executive positions in what the firm called “rightsizing.” In a press release, Hexo said the cuts were necessary as it adjusts “to a changing market and regulatory environment with a view towards profitability and long-term stability.”
Sebastien St-Louis, CEO and co-founder, called the layoffs his “hardest day” with the firm.
“While it is extremely difficult to say goodbye to trusted colleagues, I am confident that we have made sound decisions to ensure the long-term viability of Hexo Corp. The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020.” – St-Louis, in a statement
Chief Manufacturing Officer Arno Groll and Chief Marketing Officer Nick Davies were included in the round of layoffs.
According to a Global News report, the Gatineau, Quebec-based company had 822 employees as of April 30. The plan includes the shuttering of facilities it operates near Niagara Falls, Ontario, Marketwatch reports. Those facilities were operated by Newstrike Brands, which was acquired by Hexo in a deal closed in May.
According to Marketwatch, the announcement came a day after the Canadian cannabis company said it was raising $53.3 million in convertible debentures through a private placement and that it is postponing its earnings call until Tuesday. Earlier this month the company warned investors that it was expecting revenues for the July quarter to reach C$14.5 million instead of the anticipated C$24.8 million; they are expected to report sales of C$15 million, up from C$1.4 million during the same period a year ago.
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