Aurora Cannabis on Tuesday announced a new round of staff reductions and plans to shut five facilities over the next two quarters, as the COVID-19 pandemic pummels the cash-crunched cannabis industry.
For most marijuana companies in Canada, which legalized recreational cannabis in October 2018, profits have proven elusive due to fewer-than-expected retail stores, cheaper rates on the black market and slow overseas growth.
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The industry has been further hit by the COVID-19 crisis, which has also upended financial markets, making it harder to get investor dollars.
To survive the challenging times, Aurora has cut its selling, general and administrative (SG&A) workforce by 25 per cent and will lay off 30 per cent of production staff over the next two quarters, it said.