Canopy Growth to lay off 85 workers, cease some global operations
Published Thursday, April 16, 2020 11:03AM EDT
Workers process medical marijuana at Canopy Growth Corporation's Tweed facility in Smiths Falls, Ont., on Monday, Feb. 12, 2018. (THE CANADIAN PRESS/Sean Kilpatrick)
SMITHS FALLS, ONT. -- Canopy Growth Corp. is laying off workers, closing a handful of facilities and ceasing operations in several countries as it tries to optimize its production and better balance supply and demand.
The Smiths Falls, Ont.-based cannabis company says it will lay off 85 full-time workers and close its indoor facility in Yorkton, Sask. to align its production in Canada with market conditions.
Canopy will also stop farming operations in Springfield, N.Y., because of an abundance of hemp produced in the 2019 growing season. The company says it will continue using that supply to create hemp-derived CBD products for the U.S. market.
Outside North America, Canopy will end work at its cultivation facility in Colombia and has entered into an agreement to stop operations in South Africa and Lesotho.
Canopy says it will transfer ownership of its African operations to a local business it did not name. It expects to close the transaction in the coming weeks.
In March, Canopy laid off 500 employees, closed some of its greenhouses and took writedowns of between $700 million and $800 million as it dealt with profitability challenges.