Aurora Cannabis Layoffs Continue Despite Cannabis Stocks Boom

Edmonton-based Aurora Cannabis (ACB) have stopped production at their Aurora Sun property in Medicine Hat. About 30 workers were made redundant.

Aurora’s Vice President of Communications, Michelle Lefler says that the facility is now offline.

Ms. Lefler says the measures were part of a review the company is conducting to ensure all of its operational plans are in line with both the company’s strategy and to the retrenchment in the cannabis industry.  Facing steep operating losses, Aurora had to cut back its newly built cultivation sites, resulting in hefty cuts and other impairments.

The company also paid substantial premiums for competitors that did not perform as expected. In early 2018, it paid CA$3.2 billion to acquire MedReleaf, despite MedReleaf’s CA$43.6 million in sales per year. 

Aurora’s shares closed trading on the NYSE at $10.44 per share on January 11^th 2021.

This is part of a realignment of the company’s business. Previously, in June 2020 the company laid off 700 workers. They unveiled plans to cease operations at five facilities in Saskatchewan, Ontario, Alberta and Quebec. It plans to consolidate production and manufacturing at four facilities in Alberta, Ontario and British Columbia. Aurora’s shares closed trading on the NYSE at $10.44 per share on January 11^th 2021.

This latest move is part of a realignment of the company’s business. Previously, in June 2020 the company laid off 700 workers. They unveiled plans to cease operations at five facilities in Saskatchewan, Ontario, Alberta and Quebec. It plans to consolidate production and manufacturing at four facilities in Alberta, Ontario and British Columbia.