Aurora Cannabis CEO Steps Down As Sector Growth Slows
Aurora Cannabis is a major Cannabis supplier in Canada. Michael Singer, who currently serves as the company’s executive chairman, will serve as interim CEO. 500 jobs will be cut. 125 of those jobs will be corporate jobs.
The aim of the leadership shakeup and job cuts is to reduce the company’s spending. Additionally, spending on travel and other marketing initiatives will be decreased. Aurora Cannabis is facing difficulties in establishing profitability as the sector fails to meet growth expectations.
"This was an incredibly difficult decision and not one taken lightly," Aurora CFO Glen Ibbott said.
Other Cannabis suppliers throughout Canada are facing similar issues. For example, Tilray laid off 10% of its workforce.
"Tilray restructured its global organization to meet the needs of the current industry environment and for continued growth in 2020 and beyond," Tilray CEO Brendan Kennedy said.
Sundial has been less transparent of its cost-cutting measures but has also made clear it will lay off employees.
"We have implemented several streamlining and efficiency initiatives to position the Company for long-term, sustainable growth. These initiatives include workforce optimization, along with enhancement of facility workflows and processes, realignment of product lines and product formats to areas of stronger demand and a heightened discipline in cost management," a Sundial spokesperson said.