Canopy Growth announces layoffs

Canopy Growth Corporation announces layoffs. Canada’s largest cannabis producer is trying to cut costs, including reducing the number of “dedicated team members.” Referred to as “strategic adjustments” in the company’s press release, Canopy expects this move to save Canopy $100 million to $150 million over 18 months.

A press release from the company said: “As a result of these challenging but necessary changes to the organizational structure, committed team members will be impacted as the company operates with a reduced headcount going forward. The Canopy management team would like to recognize the efforts of these individuals during their tenure and thank them for their contributions to the company.”

Canopy layoffs have happened before

This isn’t the first time Canopy has announced layoffs. Cutting costs by laying off employees becomes routine. In late 2020, Canopy laid off several hundred workers across Canada. And then again, in early 2021, Canopy announced layoffs of 75 employees at its Smith Falls headquarters.

Last year they reported a net loss of $829.3 million; In the previous quarter, the net loss shrank to $115.5 million. Canopy’s net sales are down 8%.

The company’s free cash flow has been negative since its inception. Free cash flow filters out all the accounting tricks enforced by industry and government standards. It takes into account operational activity and investment activity.

hope for the future?

Will Canopy announce layoffs again in the future?

“To realize profitability and achieve growth, we are taking decisive actions to evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential for success,” said David Klein, Canopy’s chief executive officer Growth. “These necessary changes are being implemented to ensure that the size and scope of our operations reflect current market realities and support the long-term sustainability of our business.”

footnote(s)

https://www.prnewswire.com/news-releases/canopy-growth-announces-cost-reduction-actions-to-accelerate-path-to-profitability-301533492.html