Delta 9 reduces cannabis production by 40 per cent, with temporary layoff of 40 staff
The company is working closely with employees to reduce the impact of this decision, including continuing to cover costs for benefits and other transitional services.
January 10, 2023 By Delta 9 Cannabis
Delta 9 Cannabis has announced various cost-cutting measures as a part of the company’s 2023 strategic plan with the goal of producing positive cash flow from operations.
As a part of the 2023 strategic plan, the company plans to streamline its cultivation operations and right-size capacity at its Winnipeg-based cultivation facilities, as well as various other cost-cutting measures, including reducing public company and investor relations costs.
“We recognize that in the current market environment, we need to make near-term strides to improve profitability across our operations,” said Jim Lawson, CFO of Delta 9, “The cost savings are expected to reduce operating costs by $3 Million to $4 Million in 2023.”
As a part of the plan, cultivation capacity at Delta 9’s Winnipeg-based cultivation facilities will be cut by approximately 40 per cent, which will include a temporary layoff of approximately 40 staff. The plan has been developed to ensure that there is no material impact on wholesale revenues or on shipments to the company’s wholesale and retail customers. Delta 9 is working closely with employees to reduce the impact of this decision, including continuing to cover costs for benefits and other transitional services. Retail operations are not expected to be impacted as a part of this plan.
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