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Investor Alert

April 27, 2022, 8:45 a.m. EDT

Canopy growth eliminating about 250 jobs in cost-cutting move

Canopy Growth Corp. (NAS:CGC) (TSE:CA:WEED) is laying off about 250 employees as result of cost-cutting measures, a spokesperson for the cannabis company told MarketWatch. As of March 31, the company had 3,084 employees. Canopy Growth on Tuesday said it expects to generate cost savings of C$30 million ($23.4 million) to C$50 million and reduce SG&A expenses by C$70 million to C$100 million within 12 to 18 months, in addition to its previously announced cost savings of C$150 million to C$200 million. The company expects to book C$250 million to C$300 million in fourth-quarter charges. The majority of the charges will be non-cash and related to the write-down of excess inventory balances as well as property, plant and equipment impairments. Canopy Growth expects to incur between C$100 million and C$250 million in non-cash impairment charges in its fourth quarter, driven by goodwill and intangible asset impairments. Shares of Canopy Growth, which is backed by spirits giant Constellation Brands Inc. (NYS:STZ) , have fallen 39.3% in 2022, compared to a 33.% drop by the Cannabis ETF (PSE:THCX) .

Link to MarketWatch's Slice.