Canopy Growth Corp. has announced a restructuring that will see 800 layoffs, or 60% of its workforce, in Canada over the coming months.
Forty per cent of the layoffs will happen immediately.
In a statement released by the company on Thursday, Canopy Growth said it’s shutting down production at its headquarters in Smith Falls,Ontario. It is also ceasing the sourcing of cannabis flower from the Mirabel, Quebec facility, and moving to a third-party sourcing model for cannabis beverages, edibles, vapes, and extracts.
Now, the company will now grow its cannabis in two facilities; Kelowna, B.C. and at 7ACRES in Kincardine.
To help save on research and development costs, Canopy will partner with Quebec-based EXKA Inc. to manage its cannabis genetics program
A Canopy spokesperson confirmed what a source told CKNXNewsToday.ca, that dozens of employees in Kincardine will be losing their jobs.
“Approximately 70 employees received notice from Canopy Growth today. As highlighted in the announcement, these decisions are difficult, but we have made the move to consolidate our owned cultivation between our Kincardine and Kelowna sites, as these facilities have demonstrated their capability to produce high-quality cannabis. We are grateful for each team member who has contributed to the organization,” said Jennifer White, Senior Manager, Corporate Communications.
White said 160 employees will remain at the Kincardine facility.
“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership. We are transforming our Canadian business to an asset-light model and significantly reducing the overall size of our organization. These changes are difficult but necessary to drive our business to profitability and growth,” said Canopy Growth CEO David Klein.
Canopy announced Thursday that its fiscal third quarter results reported a cumulative $2.2 billion loss in the first half of its current fiscal year.