Aurora Cannabis Announces More Layoffs, Here's Why

Aurora Cannabis Inc. ACB continues to trim its workforce as it seeks to achieve profitability.

The Edmonton, Alberta-based cannabis giant confirmed in an email to Marijuana Business Daily that the cutting of 12% of its global workforce will result in additional cost savings worth up to CA$90 million ($69 million).

“Today we delivered against that commitment as we announce a corporate reorganization that will allow Aurora to operate as a leaner, more agile, and future-focused company, fit for success in the evolving global cannabis industry,” a spokesperson said Tuesday. “Aurora continues to make substantial improvements to our business as we work through the phases of our transformation plan, designed to deliver shareholder value, and secure Aurora’s future as a leading global cannabis company.”

Aurora’s ‘Business Transformation Plan’

For over two years, the company has been undertaking its 'business transformation plan' which included cost efficiency initiatives and efforts to improve its balance sheet, following the retirement of former CEO Terry Booth.

In 2020, Aurora halted operations in several facilities due to the pandemic’s impact, which resulted in laying off more than 1200 employees.

In September, the company announced that it was closing its Edmonton, Alberta-based facility, affecting roughly 8% of its global workforce at the time. An adjacent factory called Aurora Sky took over the medical distribution from the Aurora Polaris facility that had been shut down. In addition, manufacturing operations were transferred to the company’s Aurora River factory located in Ontario.

As of late September, Aurora had 1,643 employees, even though the company said that’s not the exact figure keeping in mind additional closures of facilities and business restructuring.

“We deeply thank those who were impacted for their important contributions to Aurora’s growth,” the spokesperson said.“All Aurora employees will be fully supported as they transition from the company.”

Q3 Financial Results & Analyst’s Take

The company reported financial and operational results for the third quarter of fiscal 2022 in May, revealing a 17% sequential decrease in revenue to $50.4 million.

Cantor Fitzgerald’s analyst Pablo Zuanic said the quarter ended March 31 was the second-lowest of the last seven quarters.

Still, Miguel Martin, CEO of Aurora, says that “our plan is working and we remain firmly on track to achieving a positive Adjusted EBITDA run rate by the first half of fiscal 2023.

In the third quarter, adjusted EBITDA loss declined to $12.3 million versus $9 million in the prior period, but narrowed from $20.9 million in the prior-year period.

Recent News

Price Action

Aurora’s shares traded 1.55% higher at $1.31 per share during the pre-market session on Thursday morning.

Benzinga photo. Source: Image from Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CannabisEarningsNewsPenny StocksSmall CapMarketsLayoffsMiguel MartinPablo Zuanicthird quarter earningsworkforce
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.