Industry watchers say this week’s rash of cannabis company layoffs and executive departures is likely to continue.
They are expecting a rocky year for the industry and anticipating that the coming months will bring more dramatic staffing cuts and changes to leadership at small and large cannabis companies alike.
Their predictions come in the wake of Aurora Cannabis Inc.’s Thursday announcement, revealing that it would be slashing 500 staff jobs, taking nearly $800 million in goodwill writedowns and seeing the departure of its CEO Terry Booth.
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Aurora’s news came just days after Tilray Inc. said it would lay off 10 per cent of its workforce in a bid to cut costs and a week after Sundial Growers axed some of its workforce.
Lisa Campbell, the chief executive officer of cannabis sales and marketing company Mercari Agency, says cuts were inevitable because a lot of companies spent too much of their time around and after legalization overvaluing their companies.
Omar Khan, the national cannabis sector lead at Hill+Knowlton Strategies, says governments need to take note of the recent job losses and find ways to help the industry develop long-term economic strategies.
