Canopy Growth Shuttering Facilities Across Canada, Abandons Outdoor Marijuana Cultivation
Large Canadian cannabis producers have reported billions in losses since Canada legalized
Cannabis producer Canopy Growth is shuttering more facilities across Canada amid a fresh round of layoffs in an effort to streamline operations and improve margins, the struggling company announced Wednesday.
The cuts come amid a broad supply-demand imbalance in the Canadian cannabis industry. The glut has resulted in a mountain of cannabis inventory – both unpackaged and packaged – sitting in warehouses.
Approximately 220 employees will lose their jobs as part of the latest closures, and the Smiths Falls, Ontario-based producer is abandoning outdoor cannabis cultivation in Canada.
As a result of the latest moves, Canopy expects to record pretax charges of up to 400 million Canadian dollars ($312 million) in the third and fourth quarters of the current fiscal year.
In a news release, Canopy said it will “cease operations” at its sites in:
- St. John’s, Newfoundland and Labrador.
- Fredericton, New Brunswick.
- Edmonton, Alberta.
- Bowmanville, Ontario.
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