Canopy Growth Announces Plan to Shut Down Five Facilities

According to the latest announcement made by Canopy Growth, the company will shut down five of its facilities across Canada. The organization’s decision, which is involved in the business of Cannabis, is likely to result in laying off its workers. The exact number of employees to be impacted by the decision is not clear; however, according to an estimate, more than 200 people will be handed over the pink slips by the organization.

Following are the five facilities that the company has decided to shut down: Fredericton, St. John’s, Edmonton, Ont., Bowmanville, and Saskatchewan’s outdoor facility. This closing down will have the company save up to the tune of $150-$200 million, which, in turn, help it come back on the path of profitability. The Chief Executive Officer of Canopy, David Klein, said that in the third and fourth quarter of the fiscal year 2021, the company is expected to record pre-tax charges in the range of $350-$400 million.

Klein expressed the confidence that despite the production sites’ closure, the remaining facilities of the company would be able to meet the cannabis demand requirements in both present and future scenarios. He admitted that the company’s decision to let go of people was difficult, although it had to be taken to ensure the company’s sustenance in the future.

Closing down some of the facilities will help the company to cut its operating costs while boosting profitability in the long run. It is troublesome for employees impacted due to this layoff; however, for the overall financial health of the organization, this decision is expected to bode well.