Organigram Holdings (TSX: OGI) (NASDAQ: OGI) has laid off 45% of its workforce which represents approximately 400 employees across all areas of its operation as a result of the ongoing COVID-19 pandemic. The layoffs, which began close to two weeks ago on March 24, is said to consist of a majority of voluntary layoffs,
Certain parts of the operation were offered voluntary layoffs in light of the ongoing pandemic, while some, such as administrative and support functions, was deemed as non-essential. Organigram has indicated that it continues to monitor the situation in an attempt to be proactive, with the announcement following a previous declaration that a “material amount” of employees would be laid off.
In an act of good faith, Organigram will be making lump sum payments to the affected individuals to help bridge the gap until government funding comes through. The company will also be the employee paid portion of health benefits for all employees.
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As a result of the layoffs, Organigram has also indicated that it will be facing reduced cultivation, harvest, production and packaging operations. The reduction is planned to be countered through the use of on-hand inventory that the company currently has. However, guidance towards the launch of new powdered beverage and Ankr Organics branded products has been pulled.
Organigram Holdings last traded at $1.71 on the Nasdaq.
Information for this briefing was found via Sedar and Organigram Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
