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Hexo shuts down another facility to reduce costs, lays off 230 staff

After already shutting down three facilities back in January, and cutting an additional 180 jobs in February, HEXO is not yet done with reducing their costs. The indebted cannabis company has now announced that it will close its Belleville facility and transition its operations to other sites. This decision will be impacting 230 of their employees.

“After an extensive review of site capabilities, we have identified this operational closure and transition as an opportunity to further optimize our network,” said HEXO Acting Chief Operating Officer, Charlie Bowman. “Our decision is designed to leverage other sites with available infrastructure and capabilities to improve production outputs while significantly reducing costs across our entire network. This is a critical next step for HEXO as we continue to make strides towards becoming cash flow positive from operations.”

As part of the transition, all manufacturing machinery and equipment currently located at HEXO’s Belleville facility will be transferred to other sites. A plan has been developed to facilitate this transition and ensure there is no impact on production or shipments. The transition is scheduled to be complete by the end of July 2022.

“I would like to thank our Belleville community partners and employees for their invaluable contributions to HEXO’s growth and success,” said HEXO President and CEO, Scott Cooper.  Approximately 230 employees will be impacted by this announcement. “This was a very difficult decision, but it is a key component of executing on our strategic plan, and one that we believe best positions HEXO for profitable growth.”

The Truss Beverage Co. operations are not impacted by this transition and will continue to operate out of the Belleville facility.

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