Aurora Cannabis is laying off 12% of its workforce – Cannabis News, Lifestyle

Aurora Cannabis announced that it will lay off 12% of its workforce as part of the company’s restructuring.

A spokesman said, “Today we fulfilled that commitment by announcing a corporate transformation that will allow Aurora to operate as a leaner, more agile and forward-thinking company poised for success in the evolving global cannabis industry.”

Aurora Launches $90M Cost Savings Project

Aurora Cannabis is laying off 12% of its workforce

The Edmonton-based company confirmed the layoffs to The Canadian Press. They did not give details.

The cuts are part of an effort to make Aurora a profitable company.

Spokeswoman Kate Hillyar said the company identified cost savings in third-quarter results as key to profitability. Aurora Cannabis reported net losses of $1 billion in the third quarter.

Like many of Canada’s big licensed producers, Aurora has never turned a profit.

The Company’s third quarter financial and operating results showed revenue decreased 17% sequentially to $50.4 million.

“If you take a look at the top players in Canada, you take a look at where their stock prices compare to their all-time highs, and we take a look at losses of 99 cents on the dollar,” says Nawan Butt, portfolio manager at Purpose investments. “It’s all to deter the shareholder for the LPs. And I’m surprised more shareholders aren’t appalled by some of the decisions management has made.”

Bad year for Aurora

Aurora Cannabis’ layoff of 12% of its workforce isn’t the only bad news. Earlier this year they announced the closure of three greenhouses. One of those places is Aurora Sky in Edmonton, which employs 13 percent of the workforce.

Originally hyped as a pioneer in cannabis growing technology, Aurora Sky is now closing. If this doesn’t demonstrate Canada’s bursting cannabis bubble, then what does?

Still, some might say Aurora is reaping what they sow when they speculated. As they gleefully watched as Canadian cannabis stock prices soared to nonsensical proportions. They once claimed they supplied a third of the country with their cannabis. They bought up every small niche company in sight. Build more greenhouses while the old market was in a glut of supply.

Anything to deter shareholders. According to an anonymous insider, the company has never sold cannabis. “They only ever sold stocks.”

Now, Aurora Cannabis is finding that it needs to start selling cannabis that people are willing to buy.