OrganiGram Holdings Inc (NASDAQ:OGI) shares go sharply down Monday, after announcing a round of layoffs, which includes a staff reduction of 25%.
The Moncton, New Brunswick-based firm also says the decision will affect approximately 220 employees including a small number who are not on temporary layoff.
The Company will move forward with a skilled, leaner, cross-functional workforce of approximately 433 active employees operating out of its indoor production facility in Moncton, New Brunswick.
Company-wide, Organigram has a total workforce of 609 employees this includes 84 employees remaining on temporary layoff who may be recalled if and when needed as the business requires.
"These decisions are never easy to make, but we are committed to ensuring the Company is appropriately sized relative to market conditions – we are incredibly grateful for the commitment that our affected employees have made in helping build the Company that Organigram is today” said Organigram CEO Greg Engel.
Throughout the COVID-19 pandemic, Organigram has remained focused on proactive strategies to protect the health and safety of its workers both inside and outside of its production facility as a priority, while also focusing on maintaining the continuity of its business. With a reduced workforce, the Company believes it can continue to meet current and anticipated near-term demand levels.
For the foreseeable future, OGI will continue to cultivate less than the target production capacity of cannabis its Moncton campus was originally designed for, with a focus on bringing new cultivars to market and increasing the tetrahydrocannabinol and terpene profile of its dried flower to meet emerging consumer demand.
OGI shares fell 18 cents, or 11.1%, to $1.44.
