Pot producer Hexo Corp cuts 200 jobs to rein in costs
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Oct 23 (Reuters) - Canadian cannabis producer Hexo Corp HEXO.TO said on Thursday it cut 200 jobs as it controls costs amid slower than expected store rollouts and as the government delays approval for cannabis derivative products.
Hexo, along with larger peers such as Aurora Cannabis ACB.TO and Canopy Growth Corp WEED.TO have flagged slow retail rollouts in major markets like Ontario and Quebec as a reason for delays in turning profitable.
The company had withdrawn its 2020 forecast, earlier this month, blaming an uncertain environment.
Hexo, which is double testing vape products amid increased regulatory scrutiny on the devices, said jurisdictional decisions to limit the availability and types of cannabis-based products added to the uncertainties.
The company on Thursday also announced the departures of Arno Groll, chief manufacturing officer and Nick Davies, chief marketing officer, and the elimination of some executive positions.
"The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020," said CEO and co-founder Sebastien St-Louis in a statement.
Canada became the first G7 country to legalize recreational marijuana late last year but sales have been dampened by supply constraints and higher prices than those on the black market.
(Reporting by Shanti S Nair in Bengaluru; Editing by Shailesh Kuber)
((ShantiS.Nair@thomsonreuters.com; +1 646 223 8780 Ext: 7208;))
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