“Although difficult, the decisions that have been made over the last few months are to allow Canopy Growth to remain focused on the areas where we are winning and ensure that we are delivering the highest quality products to our consumers in every market where we operate,” CEO David Klein told the news outlet.
In early March, Canopy announced a “production optimization plan,” which included the closure of two greenhouse facilities in Canada and the elimination of roughly 500 employees.
“Although difficult, [the] decision was made in order to align Canopy Growth’s supply with consumer demand and improve production efficiencies over time,” Klein told Cannabis Business Times at that time.
The company cited the slow rollout of Canada’s adult-use cannabis market and the timing of outdoor cultivation licensing as primary reasons behind its restructuring.
Earlier this month, Canopy took additional steps to slow its cash-burn as Klein continued to review costs. The company announced in mid-April the sale of all its African cannabis assets, located in South Africa and Lesotho, as well as the termination of its Latin American cultivation operations in Colombia.
Canopy also shuttered its indoor cultivation facility in Yorktown, Saskatchewan, Canada, as well as its hemp operations in New York.
“We have made the difficult but necessary decision to close our Waterpoint Hemp Farm based in Springfield, New York,” Canopy said in a public statement at that time. “Like many other growers in the state, Waterpoint Hemp Farm produced an abundance of hemp in 2019, which does not commensurate with current market demand or the regulatory delays surrounding hemp extracts.”
Klein told Yahoo Finance Canada that he will release more information about his “new vision” for the company in Canopy’s next quarterly earnings report at the end of May.