Job losses hitting Atholville cannabis producer, Zenabis
22 percent of workforce let go, but Zenabis won't say how many positions are being affected in Atholville
In a notice released Wednesday, Zenabis announced it would be reducing its total workforce of more than 700 employees by 22%, but the company won't break down how many employees are being let go from each of its four locations across the country.
One of the company's production facilities is in Atholville. The village's mayor, Michel Soucy, said between 450 and 475 employees worked there. The other locations are in Stellarton, N.S. and in the B.C. cities of Langley and Delta.
Soucy said he learned about the layoffs on social media the day the cuts happened and the company reached out to him Thursday.
"What they're telling us it's just due to the market, it's really a reorganization," he said.
Mandeep Khara, chief marketing officer at Zenabis said, "All locations were impacted by this decision as we have shifted our focus to operational excellence and becoming cash flow positive."
He wouldn't elaborate on the number of job losses, but says, "it does not impact our cultivation and production."
Zenabis is one of Cannabis NB's largest suppliers.
New Brunswick's cannabis retailer has seen an increase in sales, but initially lagged behind other provinces.
In Nov. 2019, the province announced it was considering handing over cannabis sales to the private sector because it's been a money-loser since the outset of legalization in October 2018. But, Statistics Canada reported last month, sales are improving as the corporation lowers prices.