Aurora Cannabis (ACB 2.24%) is closing several of its offices abroad and launching a new round of layoffs. The company confirmed a report from BNN Bloomberg that was published on Monday (and sourced from an internal memo the media outlet had seen) that it plans to shutter its offices in Spain, Portugal, and Italy.
Meanwhile, it will reduce headcount by around one-fourth in certain other European countries and at its regional office. It is unclear which specific country offices will be affected.
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"Like the Canadian recreational market, several European medical markets that Aurora currently has [a] presence in have not developed as quickly as we once anticipated," the company wrote in the memo.
"We must reduce operating costs and focus on immediate revenue opportunities in key markets," it added.
The company's forays abroad have not resulted in meaningful business. In Aurora's third quarter, the company's international sales came in at $4 million, forming a very small part of its $75.5 million in overall net revenue for the period. Marijuana legalization is proceeding slowly, if at all, in many markets overseas.
The company has already made a raft of job cuts so far this year. Last month, it announced it was laying off roughly 700 people and closing five production facilities.
Like many companies in the marijuana industry, Aurora is facing multiple difficulties in its business. These include regulatory delays, persistent competition from black-market product, and costs that drive its bottom line into the red.
On Tuesday Aurora's shares rose by 0.6%, exceeding the gains of the top equity indexes.
