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LAYOFFS AT CANOPY AND ORGANIGRAM

On Friday, Canopy temporarily laid off 200 retail employees, but reopened some of its REC stores —  Tokyo Smoke and Tweed — with reduced hours and a click-and-collect model. Canopy initially closed all 23 of its company-owned stores to encourage social distancing.
BNN Bloomberg

This week, Organigram announced it had temporarily laid off 400 staff in a 45% reduction to its workforce. The company said it wished to prevent the spread of the COVID-19 among staff.

  • Materia Ventures CEO Deepak Anand said Organigram is providing laid-off staff “significant financial benefits including lump-sum payments to bridge income gaps left by government assistance, and absorbing employee portions of health, dental, and short-term disability premiums.
    Twitter–@_deepakanand
  • Analysts Jeffries predicted other LPs would follow Organigram in temporarily cutting staff, prompting production reductions that may recreate supply shortages.
    Twitter–@jefflagerquist

Layoffs are ongoing across other sectors as well, but a carefree few weeks ago the sector was already foundering.
Twitter–@reporton, Maclean’s

Many cannabis executives spent the winter leaving their positions of their own accord, or being forced out by boards who felt they invested too much in greenhouses, ignored customers and product quality, and focused too little on profitability.
MJ Biz Daily

  • Executive compensation is becoming a point of contention. Last week, Cronos reported $7.3M in quarterly revenue–yet executives were paid a combined $18M last year, during which MJ Biz Daily‘s Matt Lamers pointed out they fell dramatically short of their 2019 targets for Net Revenue, Adjusted EBITDA & Production Volume. “That should weigh heavily on any compensation and accolades that were due for the company’s executives,” Lamers said. “Why else are they in business?”
    Twitter–@matt_lamers

Ousted Canopy’s co-founder/CEO Bruce Linton predicted capital will be hard to come by for some time, making companies with significant war chests (he cited Canopy, Cronos, and Aphria) better-suited to weather the coming shortage.
BNN Bloomberg

Lift & Co announced a strategic partnership with events organizer MCI USA, which will take over “operational control” of Lift & Co events. The company pushed its summertime Toronto trade show back into November.
Globe Newswire