Canopy Growth closing Tweed’s Smiths Falls facility, laying off 800 workers

February 9, 2023 · Stratcann

The layoffs will represent 35 per cent of the company’s workforce. Forty per cent of the cuts will be immediate while the rest will take place over the course of the coming months.

The former Hershey chocolate factory at 1 Hershey Drive in Smiths Falls was an iconic symbol of cannabis and cannabis legalization in Canada formerly under the Tweed banner.

The company says it will move to an “asset-light model” and will also cease cannabis flower production from Smiths Falls to its Mirabel, Quebec facility. Canopy will also move to a third-party sourcing model for cannabis beverages, edibles, vapes, and extracts.

“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. “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.”

Canopy’s recent quarterly report showed net revenue of $101 million in Q3 FY2023, which declined 28% versus Q3 FY2022. The company claims the decrease is primarily due to increased competition in the Canadian adult-use cannabis market, the divestiture of their “C3” Cannabinoid Compound Company GmbH, a decline in their U.S.-based CBD business, and softer performance from assets Storz & Bickel and This Works.

The company hopes these cost-cutting measures will reduce annual expenses by $140-$160-million over the next 12 months. (Full Story)

In category:Business
Next Post

Psychedelic API Market To Reach $6.1B By 2033 Boosted By LSD: New Analysis

The psychedelic Active Pharmaceutical Ingredient (API) Market, currently estimated at $1.6 billion, is expected to rise at a CAGR of 13.2% over the next ten years and be worth $6.1 billion by the end of 2033. That's according to Persistence Market…
Read
Previous Post

Cannabis MSO MedMen warns about cash situation, ability to stay afloat

California-based cannabis multistate operator MedMen Enterprises is warning investors that it might not have enough money to “meet its obligations” for the next year and that there are questions about its ability to stay in business. MedMen’s latest quarterly filing…
Read
Random Post

Opinion: How craft cannabis producers can survive economic headwinds

The cannabis industry is in distress. Marijuana companies across North America are laying off employees, retailers are closing their doors and cultivation facilities are turning off the grow lights. It is not all doom and gloom, though. Cannabis producers can take…
Read
Random Post

Efforts to Make Legal Cannabis Industry Equitable Are Falling Flat

More than a dozen states have created programs to give minorities who were disproportionately affected by the war on drugs a chance to participate in their legalized cannabis industries.  So far, those efforts haven’t worked.  Black and Latino entrepreneurs seeking to capitalize on the new…
Read
Random Post

Medical Marijuana is Good Enough for Most Oklahoma Voters

Voters in Oklahoma rejected a ballot initiative to legalize cannabis for adult use during a special election Tuesday by a margin of 62 percent, according to the Associated Press. More than 566,000 voters participated in the special election. Opposition was…
Read
Random Post

Thailand teaches Indonesia how to legalise cannabis

Government officials from Indonesia – a country famous for having some of the strictest drug laws in the world – flew to Thailand to learn about the kingdom’s liberal medical cannabis policies this morning. News that old-fashioned Indonesia is considering legalising medical cannabis comes as quite a shock…
Read