Canopy Growth Announces Greenhouse Closures, Layoffs
Just a few days after cannabis retail chain MedMen announced it would divest its interests in growing and processing facilities, Canopy growth has decided to close two large cultivation facilities. As CNN Business reports, the company blamed a “slower than anticipated” Canadian recreational market for the closures. The company said it would keep its outdoor cultivation site, which they say is more cost effective than the greenhouses.
The two major facilities Canopy is shutting down are both in British Columbia and account for 3 million square feet of their cannabis cultivation operations. According to the article, the closures represent over half of the company’s total grow operation and will result in the layoff of 500 Canopy employees. In a statement, W. Andrew Carter, an analyst covering Canopy Growth said there is, “limited value for indoor production, particularly greenhouse cultivation.”