Canadian marijuana producer Organigram has lower its workforce by about 25% and says production ranges will be below capacity “for the foreseeable future.”
Organigram described the cuts in a information launch as “an effort to better align its production capacity to prevailing market conditions.”
The New Brunswick-based firm first warned that the COVID-19 pandemic may lead to layoffs and production decreases in late March.
Subsequently, Organigram briefly laid off about 400 staff in early April. At the time, these layoffs represented about 45% of the corporate’s workforce.
The layoffs introduced Friday will have an effect on about 220 staff, Organigram stated, “including a small number who are not on temporary layoff.”
Eighty-four Organigram employees are nonetheless on non permanent layoff, with the potential of being recalled.
The firm now employs 609 individuals, together with the 84 employees on non permanent layoff.
Organigram is cultivating “less than the target production capacity of cannabis its Moncton campus was originally designed for, with a focus on bringing new cultivars to market and increasing the tetrahydrocannabinol and terpene profile of its dried flower to meet emerging consumer demand,” the press launch stated.
However, Organigram stated it “believes it can continue to meet current and anticipated near term demand levels” regardless of the job cuts.
Organigram additionally delayed the submitting of its third-quarter interim monetary statements by a few week, till July 21.
The firm expects to report decreased web income from its second quarter, “impacted by insignificant wholesale revenue being recorded in the quarter.”
Organigram is the latest Canadian producer to slash its cultivation output, after comparable strikes by Tilray, Canopy Growth, Hexo and Aurora Cannabis.
Most massive Canadian cannabis producers spent years constructing production capability that was by no means wanted.