The recent cannabis industry downturn has been forcing many corporations to cut jobs, slow down production, and open less shops. This can be seen with the cannabis giant Canopy Growth cutting more than 60% of their total jobs. According to Canopy Growth and their backer, Constellation Brands Inc, the black market is causing the marijuana industry to not meet expectations, forcing them to cut out over half of their workforce.
Canopy Growth is Canada’s second largest cannabis producer. This restructuring of workforce is the second overhaul the company has had to do within the last 12 months. The organization says that doing so would save the company over C$310 million, thus making the company profitable once again.
David Klein, CEO of Canopy Growth had this to say about the issue, “Today, there are two very different cannabis markets in Canada. One that’s legal, highly taxed and regulated, and one that’s thriving and illicit,”. Many in Canada are calling for a strict lockdown on the illegal marijuana markets, claiming they are harming the legal industry significantly.
Due to this recent news, shares for Canopy Growth fell over 18% last Thursday. This business often is one of the top cannabis stocks in yearly growth and this downturn was rather shocking for many shareholders. The company used to be Canada’s most valuable cannabis company but is now second to Tilray Inc.
Most of the job cuts are happening currently. Many of the laborers are expected to find new jobs in the industry with Canopy claiming they would not be able to take them back until as early as 2024.
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