Canopy Growth Corporation, one of the largest cannabis companies both in Canada and around the world, announced efforts to cut operations costs, including a “reduced headcount” and reduction of the number of “dedicated team members”.
Framing them as “Strategic adjustments” in a company press release, Canopy says the changes are “expected to generate savings of $100 – $150 million within 12 – 18 months.”
“As a result of these challenging but necessary changes to the organizational structure, dedicated team members will be impacted as the Company operates with a reduced headcount moving forward. The Canopy Management team wishes to acknowledge the efforts of these individuals during their tenure and thank them for their contributions to the Company,” notes a company press release.
“To realize profitability and power growth, we are taking critical actions to further evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential of success,” said David Klein, Canopy Growth Chief Executive Officer. “These necessary changes are being implemented to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company.”
The company laid off several hundred in late 2020 and another 75 staff members in early 2021 following facility closures and other belt-tightening measures and “restructuring” efforts. Canopy was also dropped from the S&P/TSX 60 Index this past March and reported quarterly losses in February.
The company was left with a net loss of $115.5 million in its latest quarter compared with a net loss of $829.3 million a year earlier. Its net revenue also fell 8%.