OrganiGram Holdings (NASDAQ:OGI) recently announced a set of measures the company enacted as a result of the COVID-19 pandemic. Most notably -- largely to promote the social distancing measures that are being employed to curb the coronavirus's spread -- the cannabis grower decided to temporarily lay off about 400 staff members, or 45% of its workforce. The company said it offered voluntary layoff packages to specific employees, and that those who accepted them made up the majority of those laid off.
While the company's active workforce has been reduced significantly, OrganiGram expects it will be able to continue meeting the demand for its products thanks to its current inventory. OrganiGram took other measures as well. Those employees who can work from home are now being directed to do so. At company facilities, it has banned large gatherings, added hand sanitizer stations, and increased the amount of cleaning and sanitizing being done.
Back in January, OrganiGram reported strong financial results for the first quarter of its fiscal 2020. The company's net revenue of 25.2 million Canadian dollars represented a 54.4% sequential increase. OrganiGram's shares soared by more than 30% on the heels of that earnings release, but they've now more than given up these gains. The stock is down by more than 45% since mid-January. Given the COVID-19 pandemic and its effects on the economy, OrganiGram and its peers in the marijuana industry could face severe headwinds in the upcoming months. OrganiGram is set to release its second-quarter 2020 financial results on April 14.