Hexo Corp. says its ongoing plan to streamline the cannabis business and cut costs includes the reduction of 450 jobs.
The Gatineau-based marijuana producer says in financial filings that the reduction will result in annualized savings of $30.6 million and is meant to simplify its organizational structure so costs are more closely aligned with the businesses’ size.
The company’s latest management’s discussion and analysis paper says most of the reductions will be achieved by relying less on outside consultants, a new informational technology platform and synergies discovered through recent acquisitions.
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The document also says the company will close a processing and manufacturing facility in Belleville by the end of July.
The company did not immediately respond to a request for comment on the cuts, which came as Hexo announced that it lost about $147 million in its third quarter compared with $21 million during the same period the year before.
Revenue doubles
Its revenue for the three months ended April 30 totalled about $46 million, up from roughly $23 million in the third quarter of 2021.
The results follow a tumultuous stretch that saw the pot producer appoint its third chief executive in six months as it looks to get on the right financial track.
Hexo named Charlie Bowman president and CEO in late April, replacing Scott Cooper.
Cooper took on the role in October as part of a strategic reorganization that saw co-founder Sebastien St-Louis leave the company.
Bowman’s hiring came on the heels of the departure of former vice-president of finance Jim Clark, who left the cannabis company to take on the role of chief financial officer at Kanata software firm Martello Technologies.
