Hexo Corp., A Quebec-based marijuana company, has recently announced that it will cut about two hundred jobs across the company. This move is partly due to low revenue during the last quarter, according to the recent release by the company on Thursday, October 24, 2019. The company has a processing facility at Belleville, and around this period last year, Hexo Corp. had promised the facility would hire hundreds of employees across the United States.
According to Mitch Panciuk, Mayor of Belleville, the recent cuts will not affect the promised jobs at the Belleville processing facility. The Mayor said he learned on Thursday, October 24, that the job layoffs at Hexo Corp would not affect the Belleville facility. The facility operates at the old Sears warehouse and distribution center.
The company’s spokesman told the media that the plans for the Belleville facility would not change. Hexo Corp. had initially announced that it would provide about two hundred job vacancies for the Belleville processing facility. The Mayor said on Thursday that the number was more like four hundred, which is still the company’s goal.
The new 2.5 million-square-foot facility was to open in April 2019. The facility is yet to open due to ongoing renovations, according to Mayor Panciuk. He also said, there are no plans for growing hemp and cannabis in Belleville at this moment since the company needs the facility to help keep up with the distribution process. Hexo Corp. is, however, planning to use the new facility for packaging, logistics, and distribution.
Hexo held an open house in Belleville for those people anticipating working at the facility in November 2018. Adam Miron, the Chief Brand Officer and a Co-founder of Hexo Corp, likened Belleville to the gift that keeps on giving during the open house.
“The company picked Belleville for a lot of reasons, but what attracted us to Belleville is the proximity to other cities and the accessibility to transport. The location of the facility is ideal for all that.”
Hexo has noted regulatory uncertainties in the cannabis market, and the strict limitations on marijuana and hemp extracts are hurting the company. Delayed openings by Hexo retail stores that distribute the company’s major products has also been a setback. That means that access to the majority of target consumers is limited.