Canopy Growth Corp. announced this morning that it is taking steps to dramatically restructure its global operations. The changes are meant to encourage “strategic focus” as the company seeks to align itself with the realities of the international cannabis market.
Specifically, the company announced it will sell off its operations in South Africa and Lesotho; it will shutter its indoor facility in Yorkton, Saskatchewan to “further align production in Canada with market conditions;” and it will shut down its hemp farming operations in Springfield, New York. The company’s Colombia-based cultivation facility will also be closed as the company moves to an “asset-light” model there that will rely on local suppliers for raw materials.
The changes will also lead to the loss of about 85 full-time positions at the company. According to Marijuana Business Daily, nearly half of the lost jobs come from the company’s Colombian operations.
“When I arrived at Canopy Growth in January, I committed to conducting a strategic review in order to optimize our cost structure and reduce our cash burn. I believe the changes outlined today are an important step in our continuing efforts to focus the Company’s priorities, and will result in a healthier, stronger organization that will continue to be an innovator and leader in this industry.” — David Klein, Canopy Growth CEO, in a press release
“I want to sincerely thank the members of the teams affected by these decisions for their contributions in helping build Canopy Growth,” Klein said.
MarketWatch reports that Canopy’s U.S.-listed shares have fallen 40.4% over the past three months.
In March, Canopy shuttered two major greenhouses in Canada and laid off about 500 workers.
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