Canopy Growth laid off 245 employees on Tuesday, about 8% of its workforce, in an effort to reduce company losses and approach profitability, Marijuana Business Daily reports. The company, a federally licensed cannabis producer in Canada, said in a release that the move would save up to $150 million CAD over the next 12 to 18 months.
Canopy, which has yet to turn a profit and is struggling with falling sales in Canada, is partially owned by Constellation Brands, a major alcohol distributor.
The recent layoffs follow a familiar trend for the company since appointing CEO David Klein, who previously served as Constellation’s CFO — since then, about 1,600 employee positions have been, according to the report.
Additionally, the company has liquidated multiple greenhouses in Canada, shut down its outdoor cultivation operations, and shuttered its Denmark-based facilities.
“To realize profitability and power growth, we are taking critical actions to further evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential of success. These necessary changes are being implemented to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company.” — CEO David Klein, in a statement
Canopy is one of the few publicly-traded cannabis companies, trading as WEED on the Toronto Stock Exchange and CGC on the Nasdaq. The internationally focused company has operations in Canada and Germany and has committed to acquiring the U.S.-based firm Acreage Holdings when federal legalization there is finally realized.
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