Tilray Inc. is laying off about 10 per cent of its workforce as the Canadian cannabis producer looks to cut costs across its global operations in an effort to become profitable.
“Tilray restructured its global organization to meet the needs of the current industry environment and for continued growth in 2020 and beyond,” said Brendan Kennedy, Tilray’s chief executive officer, in an emailed statement to BNN Bloomberg.
“These changes include an approximately 10 per cent reduction in staff. By reducing headcount and cost, Tilray will be better positioned to achieve profitability and be one of the clear winners in the cannabis industry, which will drive value for our investor and employee shareholders.”
Tilray has approximately 1,443 staff globally, which includes employees in Canada, Germany, Portugal, Ireland, the United States, Australia and Czech Republic, according to Chrissy Roebuck, a company spokesperson. The layoffs include less than 35 people in Tilray’s Toronto office, Roebuck added.
“The tough decision to eliminate roles has not been taken lightly. We’re extremely grateful to our past and current employees for their contributions,” Kennedy said in the emailed statement.
Cowen & Co. analyst Vivien Azer said in a report to clients on Tuesday that the layoff announcement was a “logical response given the current state of the industry.”
“Both Canadian and international LPs have built up infrastructure levels that exceed current market demand,” Azer said. She added that Cowen doesn’t expect Tilray to be become EBITDA positive in its fiscal 2020 year. [Read More @BNN Bloomberg]