Canopy Growth (
T.WEED), the world’s largest cannabis producer, said Wednesday it plans to shut down two major cannabis production facilities in B.C. and lay off about 500 workers to “better align its operations with Canadian consumer demand for its products.”
The Smiths Falls, Ont.-based company said its facilities in Aldergrove and Delta, B.C., representing about three-million square feet of production space, will be shut down. The company said it will also halt plans to build a greenhouse in Niagara-on-the-Lake, Ont.
According to Canopy, the announcement will result in
impairment charges ranging between $700 million to $800 million.
Canopy’s announcement is the latest in a string of layoffs in the cannabis industry including recent similar moves made by
Tilray (
NASDAQ:TLRY),
Aurora Cannabis (
TSX.ACB), and
Supreme Cannabis (
TSX.FIRE) as pot companies look to cut costs amid a drive to become profitable.
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