One of Canada’s best-known weed companies plans to trim its workforce.
Nanaimo-based Tilray revealed to BNN Bloomberg that restructuring will result in a 10 percent reduction in the number of employees.
‘By reducing headcount and cost, Tilray will be better positioned to achieve profitability and be one of the clear winners in the cannabis industry, which will drive value for our investor and employee shareholders,’ CEO Brendan Kennedy said in an emailed message to the news organization.
Tilray conducts some of its corporate affairs in Toronto even though it’s technically still based in British Columbia.
Bloomberg reported that it has 1,443 staff in several countries and fewer than 35 people will lose their jobs in Toronto.
Tilray is one of several publicly traded Canadian licensed producers that have gone through tough times over the past year.
Canada waited a year after legalizing pot before edibles, topicals, and extracts were legalized. Even then, licensed producers had to wait an extra two months, at a minimum, before they were made available to consumers.
Meanwhile, many Canadians continue buying weed from unlicensed dealers, in part because they are offering products at lower prices.
Tilray’s third-quarter financial report revealed a US$35.7-million net loss on revenues of US$51.1 million.
Kennedy’s restructuring statement came two weeks after former Revlon executive John Levin became Tilray’s new chief operating officer and former Molson Coors Beverage executive Michael Kruteck became Tilray’s new chief financial officer.
In July 2018, Tilray became the first Canadian cannabis company to launch an initial public offering in the United States.
At first, the licensed weed producer announced that its shares would be priced at US$17 on NASDAQ. After they were listed, there was a buying frenzy and by October 12, 2018, they reached US$148.30.
However, Canadian cannabis company stocks fell sharply in 2019—and Tilray was no exception.
At today’s opening, Tilray shares were trading at US$18.15, which is far below its 52-week high of US$85.48.