CEO Kevin Croft said the company will continue its expansion into the European market
Vancouver-based licensed cannabis producer Zenabis Global Inc. has announced plans to sell one of its cultivation and processing facilities and has laid off almost a quarter of its approximately 700-person workforce.
The licensed producer revealed this week that it would be putting its 25,000-sq.-ft. facility in Delta, B.C., on the market as well as slashing head office staff by 33 percent and its total workforce by 22 percent.
The Delta-based operation, which holds a federal licence for cultivation, processing and sales, had been set to become an extraction and testing facility, the company noted in a statement issued in August 2019.
Zenabis also has facilities in Langley, B.C., Stellarton, N.S. and Atholville, N.B., but the company has not specified the breakdown of how many employees will be laid off in each region. Chief marketing officer Mandeep Khara, however, told CBC News that “all locations were impacted by this decision.”
Atholville Mayor Michael Soucy estimates between 450 and 475 people are employed at the local facility, but does not know how many have lost their jobs.
Zenabis is making the moves in the hopes of becoming “cash-flow positive” this year, but added that clients should be unaffected by the decision.
“This restructuring is expected to have no impact to customer service, production, product development, 2.0 initiatives, retail support or overall operations and is the result of increasing efficiencies,” the company noted in a statement this week.
CEO Kevin Croft said the company will continue its expansion into the European market despite its recent struggles.
“With our collective efforts, we continue to execute on our plan with a focus to achieve operational excellence as well as become cash flow positive in 2020,” Croft said in a written statement. “Various measures are being taken to ensure continued execution of our plans, which include expanding our exports into the European medical cannabis market and a rationalization of our cost structure,” he added.
Zenabis, which is one of provincial retailer Cannabis N.B.’s biggest suppliers, reported a net loss of $13.5 million in it its last quarterly report.
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Written by Emma Spears