Canadian marijuana producer Organigram has announced that it has cut its workforce by about 25% and said production levels will be below capacity “for the foreseeable future.”
According to the company’s news release, the cuts are in “an effort to better align its production capacity to prevailing market conditions.”
It was in March that the company had said the coronavirus pandemic could lead to job cuts and production decreases and in April had laid off around 400 employees temporarily.
The new layoffs announced this past Friday will affect about 220 employees, Organigram said, “including a small number who are not on temporary layoff.” Eighty-four Organigram workers are still on temporary layoff.
As of now, Organigram employs 609 people, including those on temporary layoff.
Organigram is cultivating “less than the target production capacity of cannabis its Moncton campus was originally designed for, with a focus on bringing new cultivars to market and increasing the tetrahydrocannabinol and terpene profile of its dried flower to meet emerging consumer demand,” the news release said.
The company said it “believes it can continue to meet current and anticipated near-term demand levels” despite the job cuts.
Organigram has additionally postponed filing of its third-quarter interim financial statements until July 21 and expects to report decreased net revenue from its second quarter, “impacted by insignificant wholesale revenue being recorded in the quarter.”
