Aurora Cannabis is cutting 12% of its global workforce as part of a corporate restructuring, the Edmonton, Alberta-based company confirmed in an email to MJBizDaily.
The company said it identified additional cost savings worth up to 90 million Canadian dollars ($69 million) to support its path to profitability.
Aurora previously said it aims to turn its first profit next year.
“Today we delivered against that commitment as we announce a corporate reorganization that will allow Aurora to operate as a leaner, more agile and future-focused company, fit for success in the evolving global cannabis industry,” a spokesperson said Tuesday.
“Aurora continues to make substantial improvements to our business as we work through the phases of our transformation plan, designed to deliver shareholder value, and secure Aurora’s future as a leading global cannabis company.”
Aurora had 1,643 employees as of Sept. 27, 2021, although the company said that figure is outdated as additional facility closures and restructuring has occurred since then.
An updated figure was not provided.
“We deeply thank those who were impacted for their important contributions to Aurora’s growth,” the spokesperson said.
“All Aurora employees will be fully supported as they transition from the company.”
Aurora has been positioning itself to capitalize on the growing medical market outside North America, a different approach than taken by some competitors who are more focused on the diminishing possibility of federal legalization of adult-use marijuana in the United States – at least in the near term.
“We firmly believe that the cannabis industry over the next several years will centre on the international medical and recreational markets and have reorganized our business as a global network, with the intent of sharing expertise and finding efficiencies in a coordinated effort to reach our shared goals,” Aurora said in its statement.
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Last month, Aurora reported a net loss of 1 billion Canadian dollars ($770 million) for the three months ended March 31.
Medical cannabis sales, however, were one of the bright spots in an otherwise dismal quarter.
Aurora sold CA$39.3 million of medical cannabis in Canada and overseas, which was 8.3% higher year-over-year.
Shares of Aurora trade as ACB on the Toronto Stock Exchange and the Nasdaq.
Matt Lamers can be reached at matt.lamers@mjbizdaily.com.
