Organigram Holdings (TSX: OGI) (NASDAQ: OGI) announced this morning that it will be reducing its workforce by 220 employees, or approximately 25%, as a result of the ongoing pandemic and the “continuing evolution of the Canadian cannabis industry.” The layoffs are said to impact employees both currently on temporary layoffs, as well as a number of those whom were currently employed.
The layoffs were said to only impact a “small number” of those whom were not on temporary layoff. Organigram had originally laid off 400 employees back in April 2020 as a result of the COVID-19 pandemic, which equated to 45% of employees at the time of announcement.
Following the termination of 220 employees, Organigram has indicated that it will have 433 active employees at its Moncton facility. Collectively, the firm has a total of 609 staff members, 84 of whom remain on temporary layoff.
In conjunction with the workforce reduction, Organigram has identified that it will continue to cultivate less than the Moncton facility has been built for. The company is currently working on bringing less common cultivars to market with a higher THC content and terpene profile.
Finally, Organigram has delayed its third quarter financials by one week as a result of the ongoing pandemic while also providing semi-opaque guidance. The result, is that financials will now be filed on July 21, 2020. A decline in net revenue is expected due to a lack of wholesale sales, along with decreased SG&A compared to the second quarter. The company also expects to report impairments on its inventories as well as its Moncton facility.
Organigram Holdings last traded at $1.62 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.
