Cannabis company Hexo Corp. is reducing its workforce by 200 jobs to adjust for expected future revenues and "ensure the long-term viability" of the firm, its chief executive said.
The announcement comes two weeks after Hexo cut its net revenue forecast for the fourth quarter and withdrew its 2020 outlook, citing factors including slower-than-expected pot store rollouts and early signs of pricing pressure.
Hexo, based in Gatineau, Que., had 822 employees as of April 30, according to a filing from its third-quarter financial results. On May 24, it added an additional 250 employees through its acquisition of licensed producer Newstrike Brands Ltd.
Chief executive Sebastien St-Louis said this was his "hardest day" at the company.
"While it is extremely difficult to say goodbye to trusted colleagues, I am confident that we have made sound decisions to ensure the long-term viability of HEXO Corp.," he said in a statement. "The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020."
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