(Reuters) - Aurora Cannabis (TO:ACB) (N:ACB) on Tuesday announced significant staff reductions and plans to shut five facilities over the next two quarters, as the cash-crunched cannabis industry scrambles to cut costs amid the COVID-19 pandemic.
The Canadian pot producer said it has cut its selling, general and administrative (SG&A) workforce by 25% and will lay off 30% of its production staff over the next two quarters.
A slow roll out of retail stores, the prevalence of illicit markets and burgeoning supply from producers racing to assert dominance have led to steep price declines and unsold pot stacking up.
Aurora said it expects SG&A expenses to be around C$42 million in the first quarter of fiscal 2021, compared with C$75.1 million, excluding severance costs, recorded in the third quarter.
It also expects production asset impairment charges of up to C$60 million in the fourth quarter.
($1 = 1.3503 Canadian dollars)