Please ensure Javascript is enabled for purposes of website accessibility

Another Cannabis Company Announces Sharp Job Cuts

By Eric Volkman - Feb 11, 2020 at 7:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This Canadian operator is shedding around 15% of its staff.

Joining a growing list of peers who have made cuts to their employee rolls lately, Canada's Supreme Cannabis Company announced it would lay off roughly 15% of its workforce. 

In its announcement, issued Tuesday after market hours, Supreme said this was part of a broader effort aimed at "focusing its businesses and implementing new operating models that prioritize near-term revenue growth in the Canadian market."

Supreme added that it has "optimized" its operations, with streamlined intra-company reporting procedures and rationalizations in vendor contracting and support services. On top of that, the company has pulled out from its involvement in Supreme Heights, described as "an investment platform based in London, UK focused on opportunities in the UK and Europe's CBD health and wellness space," when it was announced in June 2019.

Marijuana bud burning.

Image source: Getty Images.

Supreme's job cuts are the latest in a recent series of culls in the industry that have been undertaken by both large and small companies. In the former category, Aurora Cannabis (ACB -4.37%) and Tilray (TLRY) only last week announced such measures; like Supreme, these were presented as components of wider restructuring efforts.

Tilray said it let go of around 10% of its staff, while Aurora not only admitted to handing out roughly 500 pink slips, it also announced the departure of its CEO and several strict rationalization measures.  

On Tuesday, the fortunes of the three marijuana stocks diverged. Both Supreme and Tilray rose significantly in share price, by almost 7% and over 5%, respectively. Aurora, under fire from investors since its announcement, dipped by slightly more than 1%.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Aurora Cannabis Stock Quote
Aurora Cannabis
$2.96 (-4.37%) $0.14
Tilray Stock Quote

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.