Aurora Cannabis Inc (NYSE:ACB) decides to shut down five facilities and reduce staff in the upcoming two quarters. The company adopted cost-saving measures and stay competitive during the coronavirus crisis.
Reduces administrative/ general staff by 25%
Aurora Cannabis reduced administrative and general staff by 25% and expects to lay off 30% of the production staff in the next two quarters. It is on the backdrop of unsold inventory and declining prices because of supply from illegal players. The company’s SG&A expenses expect to drop to CAD 42 million in Q1 2021 compared to CAD 75 million in Q3 2020.
An update on business transformation
Interim CEO and Executive Chairman of Aurora Cannabis, Michael Singer, said the company is executing the business transformation plan announced on February 6, 2020. It will helps lower SG&A expenses in Q1 2020 to CAD 42 million. Singer also said the transformation will help to achieve additional cost savings and improve margins.
Aurora cannabis realigned its operations to maintain leadership in the cannabinoid markets worldwide and mainly in Canada. The revaluation of inventory and rationalization of the facility in Canada helps the company enhance its cash flow and gross margins. Aurora Cannabis has the right balance of financial discipline, market leadership, a strong execution team, and operational excellence for success in the long term. Singer said the team targets to become a world leader in cannabinoids and boost profits. Aurora Cannabis can play a vital role in the US, Germany, and Canada’s cannabinoid markets.
Canopy Growth to amend its deal with Acreage
Canopy Growth Corp (NYSE:CGC) is all set to amend its pact with Acreage Holdings. The company signed a deal to take over Acreage in April 2019 for $37.5 million on the expectation of legalization of cannabis manufacturing and sale in the US.
The proposed takeover helps Canopy Growth benefit from global opportunities. In a recent communiqué, Canopy Growth said Acreage takeover will help align with the market conditions and economics. CEO of Canopy Growth said the US will become a core market, and expects to use Acreage to take advantage of the emerging opportunities.
 Slashes Staff Count And Adopts Business Transformation To Maintain Leadership Position In The Cannabinoid Markets Worldwide){kind=link}