Cannabis company Canopy Growth to close 5 sites, lay off 220 people
Company says move will help save between $150 million and $200 million
Canopy Growth Corp. says it will cease operating at five facilities across the country and lay off more than 200 workers.
The Smiths Falls, Ont.-based cannabis company says it will end operations at sites in St. John's, Fredericton, Edmonton, Bowmanville, Ont., and at an outdoor grow facility in Saskatchewan.
The company says about 220 employees will be impacted by the closures.
Canopy chief executive David Klein says the moves will help save between $150 million and $200 million and accelerate the company's path to profitability.
He also says Canopy will record pre-tax charges between $350 million and $400 million in the third and fourth quarters of its fiscal 2021.
According to Klein, the production site cuts impact about 17 per cent of the company's enclosed facilities in Canada and 100 per cent of its outdoor sites.
"We are confident that our remaining sites will be able to produce the quantity and quality of cannabis required to meet current and future demand," he said in statement.
"This was a difficult decision, but I believe it is the right one. I want to thank all of the employees impacted by this decision for their efforts in helping build Canopy Growth."