What happened
Shares of Aurora Cannabis (ACB 2.28%) were down 4.9% as of 12:15 p.m. EST on Thursday. A recent sales distribution agreement has the company further trimming staff as it continues on its transformation plan.
So what
Shares of the Canadian marijuana grower jumped last week, after it announced a new agreement with Great North Distributors that Aurora said will "significantly bolster" its market share across Canada.
The company has since confirmed that additional layoffs will accompany that deal, according to Marijuana Business Daily.
Image source: Getty Images.
Now what
In an email confirming staff reductions, an Aurora spokesperson said, "We have informed the internal sales team of our agreement with Great North Distributors, and in some cases that resulted in immediate impact whereas other employees will remain with the organization for a set time."
The sales agreement is another step in a business improvement plan the company announced in early 2020. Aurora management has said the plan is designed to reduce expenses, better scrutinize capital expenditures, and improve its balance sheet to attain profitability.
Other layoffs came as Aurora announced facility closures and production cuts. In a December 2020 business update, Aurora said it was "responsibly scaling back production from our fixed asset network" after closing its Aurora Sun facility and cutting production at another facility to 25% of capacity.
Investors are counting on a successful turnaround to reverse the nearly 60% drop in the share price over the past year.
