On Monday, June 22nd, 2020, Aurora Cannabis Company, a major Canadian cannabis firm, announced that it is closing 5 of its facilities across the country. The firm also said that it will lay off about 700 employees, which is approximately 30% of its workforce.
This move comes several months after another leading Cannabis firm, Canopy Growth, laid off hundreds of its workforce earlier in the year. According to an industry analyst, the recent downsizing by these Canadian cannabis producers shows that companies are discovering their proper market size.
President of the analytical firm Business of Cannabis, Jay Rosethal, also said that these companies were adjusting to the real customer demand. Speaking via zoo, he went on to say that the recreational cannabis market had to deal with staggered start since not all products are accessible at once and too many optimistic projections regarding Canadians consumer demand.
With the COVID-19 pandemic, most stores are forced to close down and are experiencing reduced profits. Because of this, Rosethal believes these companies are compelled to focus on consumer demands rather than trying to be everything for all consumers.
He added that Canada is a small country. and it doesn’t equate to millions square feet of cannabis cultivation.
When asked about the issue, Brent Zettl, the founder of Zyus Life Sciences Inc. Company, said that Aurora is still working to turn the business into a lucrative venture. He went on to say, “You need to be focused on the market you’re in.”