In a recent press release, leading Canadian federally licensed medical cannabis provider, CannTrust shared the unfortunate news that it had to lay off a quarter of its employees amounting to 140. Said cuts are expected to help the firm save anywhere between $400,000 and $800,000 while they wait for a response from Health Canada.
As per CannTrust’s Chairman and interim CEO, Robert Marcovitch, the reason for doing so rests in their business requirements and waiting upon temporary suspension of their licenses. In addition, it seems like the firm is focused on maintaining a strong balance sheet. As for the layoffs, it is expected to take place from late October until possibly the end of 2019.
Whether or not CannTrust will retrieve its licenses rests in their detailed remediation plan sent to Health Canada on Monday, October 21, 2019. To ensure that the firm is able to resolve Health Canada’s noted compliance issues, they are actively working towards achieving their outlined plans by the first quarter of 2020.
Here’s what Marcovitch has since shared:
“This was a difficult decision, but it is imperative that our workforce reflects the current requirements of our business,” adding that, “Reducing the Company’s current operating expenses supports our financial sustainability and places us in the best position to fully resume production upon the reinstatement of our licenses.“
That said, layoffs are described as a temporary concern and that once CannTrust receives their licenses, rehiring will automatically take place.