The Canadian Press, February 9, 2023
Canopy Growth Corp. will lay off 800 workers as part of a transformation plan that will see the company close its hallmark 1 Hershey facility in Smiths Falls and consolidate some of its cultivation operations.
The Smiths Falls-based cannabis company said Thursday that the layoff will affect 35 per cent of its workforce, with 40 per cent of the cuts happening immediately and the remainder taking place over the next several months.
The move is meant to help the company behind brands like Tweed, Quatreau, Doja and Ace Valley reach profitability and enable sustainable and long-term growth. Both have become difficult because the illicit market still captures about 40 per cent of all pot sales and the Canadian cannabis sector is valued below the $7 billion that was once projected, said David Klein, Canopy Growth’s chief executive.
“We expect the sector challenges to remain for years to come and as a result, the sustainability of this legal sector is in question,” he said Thursday on a call with analysts.