The supplier of the quebec Society of cannabis Aurora Cannabis will cease the majority of its activities in its two production centres in Quebec, by the end of the year, in the framework of a second wave of cuts in the space of five months to improve its financial health.
Tuesday, the alberta company announced the closure of five production sites in Canada, among others, Pointe-Claire (Aurora Life) and Lachute (Aurora Water), in Quebec. The management has clarified, however, that a part of the facilities of Aurora Life “will remain operational to allow the manufacture of products with higher margins”.
In 2017, Aurora Cannabis had injected $ 10 million to settle in Pointe-Claire. The production capacity of the place is four tons of cannabis per year. In Lachute, the investments were of more than $ 12 million to construct facilities capable of producing 4.5 tons of pot per year. These are the only two centres in the group in Quebec.
“It is not simply an exercise in cost reduction. We have undertaken a strategic realignment of our operations to protect the position of Aurora as a leader on the key global markets of cannabinoids”, said in a press release the president and chief executive officer, Michael Singer.
This second restructuring is expected to result in the dismissal of approximately 700 people. The management has also announced that it would walk away immediately 25% of its staff in the administration and in the offices. Over the next few months, due to the closure of sites, the company expects to reduce 30% of its workforce to production.
The senior management will not be spared by these cuts. Recently, president Steve Dobler announced that he was resigning from his functions. Earlier this year, the co-founder Terry Booth had also sold off its seat.
The other facilities of the company which will close in the next few months, are located in Saskatchewan (Aurora Prairie), Alberta (Aurora Mountain) and in Ontario (Aurora Ridge). The company hopes to focus its efforts on its sites allowing for a larger production.
Last February, as part of its restructuring plan, Aurora Cannabis had announced the dismissal of 500 full-time employees.
The company is based in Edmonton is not alone in its position. In march, Canopy Growth had announced 500 layoffs.