More restructuring is taking place at Aurora Cannabis Inc. (TSX:ACB)
The Canadian cannabis producer has announced that it is closing five of its production facilities and laying off 700 workers as the company continues restructuring its operations in an effort to achieve profitability.
The Edmonton-based cannabis maker said in a written statement that it is closing five smaller-scale facilities in Quebec, Saskatchewan and Alberta this year to consolidate production at its four remaining plants, while booking a $60-million impairment charge related to the closures in its fourth quarter.
Aurora also said it plans to take a $140-million charge related to a revaluation of its raw cannabis given shifting consumer demand.
The company also said that it will cut 25% of its administrative staff and 30% of its production workforce for a total reduction of 700 positions. The latest restructuring comes several months after Aurora Cannabis announced that it would reduce its workforce by 500 staff while suspending construction of some of its production facilities in Alberta and taking a $1-billion writedown.
Other major cannabis producers in Canada have also announced plant closures, such as Canopy Growth Corp. (TSX:WEED) and Tilray Inc. (NASDAQ:TLRY) amid an oversupplied domestic market, higher costs associated with growing cannabis indoors, and pressure from investors to achieve profitability.
