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

Canopy growth eliminating about 250 jobs in cost-cutting move

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By Steve Gelsi

Canopy Growth Corp. /zigman2/quotes/200603886/composite CGC -3.56% /zigman2/quotes/202205609/delayed CA:WEED -3.03% 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. /zigman2/quotes/207737284/composite STZ +0.54% , have fallen 39.3% in 2022, compared to a 33.% drop by the Cannabis ETF /zigman2/quotes/213173823/composite THCX -2.06% .

/zigman2/quotes/200603886/composite
US : U.S.: Nasdaq
$ 2.71
-0.10 -3.56%
Volume: 11.77M
July 5, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.14 billion
Rev. per Employee
$131,696
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/zigman2/quotes/202205609/delayed
CA : Canada: Toronto
$ 3.52
-0.11 -3.03%
Volume: 1.96M
July 5, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.46 billion
Rev. per Employee
$165,130
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/zigman2/quotes/207737284/composite
US : U.S.: NYSE
$ 236.71
+1.28 +0.54%
Volume: 1.33M
July 5, 2022 4:04p
P/E Ratio
38.55
Dividend Yield
1.35%
Market Cap
$44.81 billion
Rev. per Employee
$882,180
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/zigman2/quotes/213173823/composite
US : U.S.: NYSE Arca
$ 3.80
-0.08 -2.06%
Volume: 74,461
July 5, 2022 4:10p
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