Cannabis producer The Green Organic Dutchman Holdings Ltd. TGOD is laying off employees and delaying the opening of a facility as a way to cut costs.
The move, announced Wednesday, marks yet another attempt by a cannabis company hoping to reduce expenses as a way to cope with current market conditions.
Green Organic Dutchman will delay the launch of its Valleyfield facility, and temporarily lay off the workforce there with plans to reestablish activities later this year.
The Mississauga, Canada-based company has joined other cannabis-related firms that have opted to trim staff due to the coronavirus outbreak.
"Multiple factors, most particularly the COVID-19 pandemic, are contributing to an environment in which we must be extremely prudent with how we manage our cost structure, Chief Executive Brian Athaide said in a statement.
The launch date for the rest of Cannabis 2.0 products remains intact.
In addition, the company noted that it expects to obtain Health Canada’s license amendment soon, which will enable it to automate many processes at its Ancaster facility in Ontario, reducing its costs once again.
Green Organic Dutchman had attempted to sell the facility last year through a leaseback arrangement, but ultimately took it off the market.
Among other cost reduction measures the company has taken are salary reductions – 20% for employees and 30% for some executives, halting recruitment and consultancy activities, collaborating with suppliers on establishing further cost savings.
The company's shares were trading 18.55% higher at 27 cents per share on Thursday.
Related Links:
1933 Industries Hires Cannabis Entrepreneur, Former Co-CEO Of 48North VanderMarel As Advisor
Photo courtesy of Green Organic Dutchman.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving—don’t get left behind!
Curious about what’s next for the industry and how to stay ahead in today’s competitive market?
Join top executives, investors, and industry leaders at the Benzinga Cannabis Capital Conference in Chicago on June 9-10. Dive deep into market-shaping strategies, investment trends, and brand-building insights that will define the future of cannabis.
Secure your spot now before prices go up—this is where the biggest deals and connections happen!