Please ensure Javascript is enabled for purposes of website accessibility

Canopy Growth Laying Off 200 Workers

By Eric Volkman – Updated Apr 30, 2020 at 9:00AM

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

Not for the first time in the recent past, the company is trimming its workforce.

Canopy Growth (CGC 0.13%) is going to slim down, at least for now, with a new round of layoffs.

On Wednesday, the company confirmed to BNN Bloomberg that it will temporarily let go of 200 employees, a move that comes only a few weeks after it said it furloughed the same number of workers due to the economic effects of the coronavirus pandemic. The company also recently laid off 85 staffers, in addition to closing down two greenhouses.

The cannabis company did not specify in which division(s) or location(s) the affected employees currently work.

Marijuana plants in a corporate grow space.

Image source: Getty Images.

While many Canadian provinces and U.S. municipalities are allowing marijuana dispensaries to sell product by classifying them as essential businesses through the pandemic, sales have lately been sluggish despite sharp increases before mandatory stay-at-home measures kicked in. And in contrast to their peers in other sectors of the economy, cannabis companies tend to be chronically unprofitable with low reserves of cash.

In a statement quoted by BNN Bloomberg, Canopy CEO David Klein said that "[a]lthough 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."

On Wednesday, Canopy Growth shares rose by 1.9%. Year to date, however, the shares have fallen twice as far as the benchmark S&P 500 index.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Canopy Growth Stock Quote
Canopy Growth
CGC
$2.78 (0.13%) $0.00

*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 analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

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.