Investor Alert

New York Markets Open in:

June 24, 2020, 9:04 p.m. EDT

Aurora Cannabis Closing Five Production Facilities, Laying Off 700 Workers

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Aurora Cannabis Inc. (ACB)
  • X
    Canopy Growth Corp. (WEED)
  • X
    Tilray Inc. Cl 2 (TLRY)

or Cancel Already have a watchlist? Log In

Jun 24, 2020 (Baystreet.ca via COMTEX) -- More restructuring is taking place at Aurora Cannabis Inc. /zigman2/quotes/203734337/delayed CA:ACB +0.54%

The Canadian cannabis producer has announced that it is closing five of its production facilities and laying off 700 workers as the company continues restructuring its operations in an effort to achieve profitability.

The Edmonton-based cannabis maker said in a written statement that it is closing five smaller-scale facilities in Quebec, Saskatchewan and Alberta this year to consolidate production at its four remaining plants, while booking a $60-million impairment charge related to the closures in its fourth quarter.

Aurora also said it plans to take a $140-million charge related to a revaluation of its raw cannabis given shifting consumer demand.

The company also said that it will cut 25% of its administrative staff and 30% of its production workforce for a total reduction of 700 positions. The latest restructuring comes several months after Aurora Cannabis announced that it would reduce its workforce by 500 staff while suspending construction of some of its production facilities in Alberta and taking a $1-billion writedown.

Other major cannabis producers in Canada have also announced plant closures, such as Canopy Growth Corp. /zigman2/quotes/202205609/delayed CA:WEED +4.16% and Tilray Inc. /zigman2/quotes/209129655/composite TLRY -9.24% amid an oversupplied domestic market, higher costs associated with growing cannabis indoors, and pressure from investors to achieve profitability.

COMTEX_367342411/2559/2020-06-24T21:04:12

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203734337/delayed
CA : Canada: Toronto
$ 9.39
+0.05 +0.54%
Volume: 5.16M
Nov. 23, 2020 5:40p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.72 billion
Rev. per Employee
$102,126
loading...
/zigman2/quotes/202205609/delayed
CA : Canada: Toronto
$ 32.30
+1.29 +4.16%
Volume: 2.22M
Nov. 23, 2020 5:40p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.54 billion
Rev. per Employee
$89,935
loading...
/zigman2/quotes/209129655/composite
US : U.S.: Nasdaq
$ 6.68
-0.68 -9.24%
Volume: 37.55M
Nov. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$982.75 million
Rev. per Employee
$101,445
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.