Back in January, indebted cannabis giant Hexo shut down three facilities, as well as laid off some 155 staff. Yet, it seems that the bleeding out of employees hasn't ended, as the company has announced further lays off to save up to $15 million annually. 180 people are then going to be left jobless because of management's decision.
“Today’s announcement was not an easy one to make. We are working with all impacted employees to the best of our ability to ensure that they are treated fairly and provided the support necessary to assist with this transition. I would like to thank all impacted employees for their contributions and dedication to HEXO.” said Scott Cooper, President & CEO. “We believe we have the right plan to maintain HEXO’s position as the number one cannabis company in Canada and remain focused on our growth objectives.”
The plan is expected to generate an incremental cash flow of approximately $37.5 million in fiscal 2022 and an additional anticipated and approximate $135 million in fiscal 2023 for a total of $175 million over the two years, from a combination of cost reductions and anticipated organic revenue growth.