GATINEAU, Que. – Hexo Corp. says its ongoing plan to streamline the cannabis business and cut costs includes the reduction of 450 jobs.<\/p>\n
The Gatineau, Que.-based marijuana producer says in financial filings that the reduction will result in annualized savings of $30.6 million and is meant to simplify its organizational structure so costs are more closely aligned with the businesses' size.<\/p>\n
The company's latest management's discussion and analysis paper says most of the reductions will be achieved by relying less on outside consultants, a new informational technology platform and synergies discovered through recent acquisitions.<\/p>\n
The document also says the company will close a processing and manufacturing facility in Belleville, Ont. by the end of July 2022.<\/p>\n
The company did not immediately respond to a request for comment on the cuts, which came as Hexo announced that it lost about $147 million in its third quarter compared with $21 million during the same period the year prior.<\/p>\n
Its revenue for the three months ended April 30 totalled about $46 million, up from roughly $23 million in the third quarter of 2021.<\/p>\n
This report by The Canadian Press was first published June 15, 2022.<\/p>\n
Companies in this story: (TSX:HEXO)<\/p>\n
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