Canopy Growth is laying off 800 workers as part of a transformation plan that will see the closure of 1 Hershey Drive in Smiths Falls plant while consolidating some of its operations. All operations in Smiths Falls will now take place at 99 Lorne St.
The company said Thursday morning the layoff will impact 35 per cent of its entire workforce, and the process will occur over the next several months.
The company will now complete post-production flower activity at the Lorne St. location, across the street from the old renovated Hershey facility. The location already has a regional distribution centre, bottling facility and beverage capabilities.
Lake 88 reached out to a Canopy Growth spokesperson for an interview, and were provided with a statement which says in part:
“The decision to consolidate our manufacturing operations in Smiths Falls was not easy but are essential for the future of Canopy. We wish to thank the team members departing the organization for their contributions as well as the communities we call home for your continued support.”
The Smiths Falls site housed flower and edible production on top of office space.
“These comprehensive changes are necessary to weather the storm we are currently navigating in the Canadian market. By taking necessary action, we are establishing a sustainable business in Canada which will ultimately position us as a long-term leader in the North American cannabis market,” Canopy Growth CEO David Klein said in an email sent out to employees.
“Our industry saw dramatic growth when cannabis was legalized in Canada and to capture that opportunity, Canopy built an organization and operational footprint to match expectations for a market size and level of maturity that has not materialized. Simply put, Canopy has remained too big compared to the realities of the markets in which we operate and it is clear that we must evolve our Canadian business to reach profitability and enable sustainable, long-term growth. ”
Klein also said town halls are coming in the days and weeks ahead for employees held by “your organizational leaders,” to further discuss the impact.
Canopy will also cease to source flower from its Mirabel, Que. facility, consolidate cultivation at its Kincardine, Ont., and Kelowna, B.C, sites and partner with Quebec-based EXKA, which holds the world’s largest cannabis library, who will manage its genetics program.
Story by Grant Deme with files from the Canadian Press
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