Major cannabis companies have been struggling to turn a profit, and many have gone so far as to lay off large numbers of employees in their efforts to stem their losses. It now appears that Aurora Cannabis (NYSE:ACB) will be the next to announce layoffs: According to Bloomberg, an unnamed source with direct knowledge of the company's plans has said it will cut its workforce by 10%.
Bloomberg's source said Aurora, which employs around 3,400 employees across 20 countries, will publicly announce the job cuts in the next few days. Significant numbers of those cuts are expected to fall on consultants working for the cannabis giant as contractors.
The news came just a day after peer Tilray announced it would cut 10% of its 1,440-plus employees worldwide. Other cannabis companies such as CannTrust and HEXO announced major staff reductions in 2019.
An ongoing trend
Few cannabis companies managed to report profits in the past year. Aurora, in particular, has had to resort to drastic measures to find new sources of financing and try to stem its losses. Those moves included the decision to halt construction of its newest cultivation facility, Aurora Sun, allowing it to avoid, for now, around C$110 million in construction costs. The facility was expected to create 650 jobs near Medicine Hat, Alberta.
One of the few pieces of good news that Aurora has received recently concerned its international business. After a two-month suspension over a permit issue, the company announced on Monday that its medical marijuana products can be sold in Germany again.