As the economic times get tough, companies are using different strategies in their attempts to remain afloat in turbulent environments. In that context, even major cannabis companies are looking for ways to minimize their struggles as they strive to realize profits. Several of these firms have gone ahead and laid off many workers in their efforts to minimize their losses.
It now seems like Aurora Cannabis (NYSE:ACB) will be the next cannabis firm to announce layoffs. An unnamed source that has in-depth knowledge of the company’s strategies and plans has announced that it will cut its labour force by up to 10%, Bloomberg reported.
The reliable source said that Aurora would publicly announce its plans to cut jobs in the next few days. Currently, the company employs almost 3,400 people across 20 countries. Most of the job cuts are expected to affect the consultants working for the cannabis behemoth as contractors.
This news came on February 5, a day after Tilray announced that it would also cut 10% of its over 1,440 employees globally. CannTrust and HEXO are the other cannabis companies that have announced significant staff reductions last year.
A Continuous Trend
A low number of cannabis companies managed to report profits in the last year. Aurora has had to implement drastic measures to get new sources of funding while trying to minimize its losses. The company decided to suspend the construction of its latest cultivation facility by the name Aurora Sun.
Stopping the construction has enabled the company to avoid almost C$110 million in construction costs for now. The new facility was projected to create up to 650 jobs near Medicine Hat, Alberta.
Among the few pieces of good news that Aurora Cannabis got recently comes from its international business. After a two-month suspension over a permit issue, the company said on February 3 that its medical marijuana products can now be sold in Germany once again.