Scandal-plagued CannTrust, an Ontario-primarily based cannabis grower, laid off 180 staff, or 20% of its workforce.
“We have created the particularly tough selection to restructure our workforce to reflect the present needs of our business enterprise,” Robert Marcovitch, CannTrust’s interim CEO mentioned in a news release.
The layoffs are expected to save the firm about 9 million Canadian dollars ($six.eight million), according to the firm.
CannTrust also will incur CA$two million in severance charges.
The majority of the impacted staff had been in cultivation and client service assistance roles, the firm mentioned.
CannTrust was sanctioned by Overall health Canada for conducting unlicensed cultivation and delivering inaccurate information and facts to the federal regulator.
“Over the previous two months, we have moved swiftly to assess and address the Overall health Canada report indicating regions of noncompliance in our operations, as effectively as the findings of the Particular Committee’s independent investigation,” Marcovitch mentioned in the release about the layoffs.
The scandal, which created CannTrust the least-trusted cannabis company in Canada, is weighing on the reputation of the whole market, according to a new survey by market place analysis firm Leger.
CannTrust trades as CTST on the New York Stock Exchange and as TRST on the Toronto Stock Exchange.
For additional on CannTrust’s layoffs, click right here.
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