Barrie, Ontario-based cannabinoid company MediPharm Labs said it is cutting its workforce by approximately 30% .
The move came after the company reported negative first-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 3.1 million Canadian dollars ($2.3 million).
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In addition to MediPharm itself, the job cuts also cover Vivo Cannabis, a Toronto, Ontario-based cannabis producer MediPharm acquired in April.
A MediPharm spokesperson did not immediately reply to a query from MJBizDaily on the number of affected employees.
However, as of Dec. 31, 2022, MediPharm and Vivo collectively employed 285 people, according to regulatory filings, implying upwards of 85 people could be affected.
In a news release, MediPharm said the workforce reduction is expected to save over CA$4 million on an annualized basis.
In the first quarter ended March 31, the company’s first-quarter negative EBITDA of CA$3.1 million followed red ink totaling CA$5.7 million
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