Canopy Growth to lay off 500 employees, close greenhouses, take $700-$800M writedown

Canopy Growth to lay off 500 employees, close greenhouses, take $700-$800M writedown
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SMITHS FALLS, Ont. — Canopy Growth Corp. says it is laying off 500 employees and closing its greenhouses in Aldergrove and Delta, B.C.

The Smiths Falls, Ont. cannabis company says it has determined that the facilities are no longer essential to its cultivation footprint.

Canopy says it was hampered by the Canadian recreational cannabis market developing slower than anticipated and profitability challenges across the industry.

The company will no longer pursue plans to open a third greenhouse in Niagara-on-the-Lake, Ont.

Canopy also says it will record an estimated pre-tax charge between $700 million and $800 million for its quarter ending Mar. 31.

All of the moves are part of Canopy’s effort to align supply and demand while improving production efficiencies.

This report by The Canadian Press was first published March 4, 2020.

Companies in this story: (TSX:WEED)

 

The Canadian Press

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