Canopy Growth is laying off 800 employees this year in a move that will also result in the closure of a key facility and streamlining of its operations.
The Canadian cannabis producer, based in Smiths Falls, Ontario, said on Feb. 9 that the reduction represents 35 per cent of its total workforce, and will occur over the next few months.
CEO David Klein told The Canadian Press that the decision was made due to concerns about the company’s profitability and long-term growth.
“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership,” said Klein.
The move comes a few months after Canopy Growth announced that it was cutting 55 jobs as it restructures its Canadian operations.
According to LinkedIn, the company currently employs more than 1,100 people.
Major layoffs continue
The reduction at Canopy Growth comes amid a flurry of layoffs to kick off 2023.
Big names, including Alphabet, Dell, Best Buy, Hudson’s Bay, Microsoft, Amazon, and Salesforce, are scaling back their staffing levels as they continue to monitor market conditions.
The following facilities will be affected by Canopy’s announcement:
- 1 Hershey Drive in Smiths Falls, Ontario, the company’s headquarters and main site for flower and edibles production, will be closed.
- 99 Lorne Street, across the street from 1 Hershey, will take on flower activity and continue to serve as a regional distribution centre.
- Canopy will no longer source flower from a Mirabel, Quebec facility, which is owned by Les Serres Vert Cannabis.
- Cultivation will be consolidated at its Kincardine, Ontario and Kelowna, B.C. locations
- The cannabis company’s genetics program will now be managed by Quebec-based EXKA, which hosts the world’s biggest cannabis library.
Source: Samfiru Tumarkin LLP
