UPDATE: Canopy Growth cutting 35 per cent of workforce, closing Smiths Falls factory
Posted Feb 9, 2023 02:00:00 PM.
Massive job cuts are coming to Canopy Growth, the Smiths Falls-based cannabis company.
The company has announced it will lay off 800 workers, or 35 per cent of the workforce. Forty per cent of those layoffs are effective immediately while the remainder will take place over the next several months.
On top of the layoffs, the company also intends to close its 1 Hershey Drive facility in Smiths Falls, the former Hershey factory.
“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership,” said chief executive officer David Klein in a news release issued on Thursday, Feb. 9. “We are transforming our Canadian business to an asset-light model and significantly reducing the overall size of our organization. These changes are difficult but necessary to drive our business to profitability and growth.”
The company said it is transitioning to an asset-light model in Canada by exiting cannabis flower cultivation in Smith's Falls, ceasing the sourcing of cannabis flower from the Mirabel, Québec facility, and moving to a third-party sourcing model for cannabis beverages, edibles, vapes, and extracts.
The company expects these cost reduction initiatives will reduce annual expenses by a combined $140-$160-million over the next 12 months.
“It's the latest in an unfortunate series of downsizing and layoffs,” said Smiths Falls Mayor Shawn Pankow on The Sam Laprade Show on Feb. 10. “It's really tough for the people involved.”
Pankow noted the community is resilient and will weather the storm eventually, but in the short term, there will be a sense of pain and devastation,
He hopes to connect with organizations and community groups to help the people affected by the changes at Canopy and organize resources to help them seek other employment.
Listen to the full interview with Mayor Shawn Pankow below:
