08:54 AM EDT, 07/03/2020 (MT Newswires) -- Organigram Holdings (OGI.TO), the parent company of licensed cannabis producer Organigram, said Friday it has reduced its workforce by near 25%, slashed target production capacity, and has postponed the Q3 interim filings.

Organigram's move to reduce workforce will affect near 220 employees including a small number who are not on temporary layoff, said the company.

CEO Greg Engel said: "With a reduced workforce, the company believes it can continue to meet current and anticipated near term demand levels.

"These decisions are never easy to make, but we are committed to ensuring the Company is appropriately sized relative to market conditions - we are incredibly grateful for the commitment that our affected employees have made in helping build the Company that Organigram is today."

In the future, OGI is set to cultivate less than the target production capacity of cannabis its Moncton campus was originally designed for.

Organigram is also briefly postponing the filing of its interim financial statements, interim management's discussion and analysis and certifications for the interim period ended May 31, 2020 by near one week, to July 21. The company is relying on blanket exemptive relief granted by the Canadian securities regulatory authorities that permits it to delay the filing, which would have been July 15, 2020.

Amid the COVID-19 pandemic, the company expects a Q3 decline in net revenue compared with Q2 2020. It also expects a decrease in selling, general & administrative expenses for fiscal Q3 2020 compared with Q2. As the company right-sizes its production to market demand and reviews its asset carrying values, it expects negative adjustments to inventories and an asset impairment on its Moncton facility. OGI also expects to meet consumer demand as it continues to adjust its operations to emerging preferences in a dynamic marketplace, according to a statement.