Canopy Growth Shrinking
CBJ — Canopy Growth is laying off 500 workers and taking a write-down that could be as much as $800 million as it reorganizes due to the recreational marijuana market developing much slower than anticipated. That unexpected shortfall has led to less than projected earnings.
As as result of the layoffs two greenhouses will be shut down and a planned third greenhouse in Niagara-on-the-Lake, Ontario has also been scrapped.
Canopy Growth is headquartered in Smith Falls, Ontario. It spearheads well-known brands including Tweed, Spectrum Therapeutics, Tokyo Smoke and CraftGrow.
Canopy now operates an outdoor production site that’s made cultivation more cost-effective. It believes that new location will play a pivotal role in meeting demand for products necessitating cannabis extracts.
It’s been a tough haul for another large entity in the industry. Aurora Cannabis just recently cut 500 jobs and took about $800 million in goodwill write-downs.