Canopy Growth laying off more workers as restructuring continues

Cannabis

Canopy Growth Corp. is laying off another round of workers as the cannabis company continues to restructure.

The Smiths Falls-based company would not say how many employees were affected by the cuts, but confirmed they were based at its Niagara-on-the-Lake and Smiths Falls locations and said it would share more details in the fall when it releases financial results.

Niagara-on-the-Lake is home to Canopy's Tweed Farms and Smiths Falls is where the company is headquartered.

The layoffs come after Canopy let go of 30 operations staff in Smiths Falls on July 8.

The cannabis company behind the Tweed and Tokyo Smoke brands also culled 500 people from its workforce in March and 85 in April.

The cuts were triggered by a restructuring Canopy began after finding that the Canadian recreational pot market is developing slower than it anticipated and after facing profitability challenges.

The cannabis company had a net loss of $128.3 million or 30 cents per diluted share in the second quarter of its 2021 financial year. That compared with a net loss of $194.1 million or 54 cents per share during the same period a year ago.

Canopy said its consumer sales dropped by 12 per cent when it was forced to close its 22 stores until mid-May during the COVID-19 crisis.