VIVO Cannabis cuts jobs in effort to improve cash flow
October 23, 2020 By Grow Opportunity staff
In an effort to “streamline” operations, Ontario-based VIVO Cannabis Inc. is cutting 18 per cent of its workforce, or roughly 45 positions within the company.
The majority of the cuts have come from its indoor grow facility in Napanee, Ont. where about 40 of the 60 workers, or two-thirds, were laid off by Oct. 23. In a company statement released earlier that week, CEO Barry Fishman explained that these measures were made in an effort to “rightsize” its Napanee operations and focus on low-cost cultivation and manufacturing of Cannabis 2.0 products.
The company is looking to target a positive adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, during the first half of 2021.
“Our goal is to make VIVO a stronger, more focused company by leveraging synergies between our business units and adapting to the realities of the market,” said Fishman. “This includes making the difficult decision to reduce our workforce, a move that was not taken lightly, and we remain grateful to all those affected for their previous efforts and contributions. These changes will allow VIVO to reduce costs by specializing resources and streamlining our organizational structure.”
According to the company’s statement on Oct. 21, other activities, such as packaging and distribution will be centralized at the Canna Farms facility in Hope, B.C. It was also announced that Canna Farms president and company director, Dan Laflamme, has decided to step down. Co-founder Ray Laflamme has been appointed interim president.
According to The Kingston Whig-Standard, the company completed a $30-million expansion of its Napanee facility last year which added three outdoor air houses to the facility.
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