Canopy Growth closes cultivation sites on three continents

Canopy Growth, one of Canada's cannabis giants, announced Thursday that it would scale back its global operations with the aim of «improving the efficiency» of its operations.

More specifically, the company announced that it would sell its operations in South Africa and Lesotho to a local company. It will close its indoor cultivation facilities in Yorkton, Saskatchewan, to «better align production in Canada with market conditions.« It will also shut down its U.S. hemp cultivation operations in Springfield, New York. Its Colombian cultivation site will also be closed, and nearly 40 people will be laid off, as the company shifts to an »asset-light” model and relies on local suppliers for raw materials.

«We have made the difficult but necessary decision to close our Waterpoint Hemp Farm in Springfield, New York,» wrote a spokesperson for Canopy Growth on CNN Business. «Like many other producers in the state, Waterpoint Hemp Farm produced an abundance of hemp in 2019, which does not meet current market demand or account for regulatory delays related to hemp extracts.»

«When I joined Canopy Growth in January, I committed to conducting a strategic review to streamline our cost structure and reduce our cash burn,» he said declared David Klein, Canopy Growth's new CEO, has arrived following Bruce Linton's dismissal.

«I believe the changes announced today are an important step in our ongoing effort to focus the company's priorities and will result in a healthier, stronger organization that will continue to be innovative and a leader in this industry.»

Canopy Growth's downsizing has not yet affected Europe. Canopy had already laid off some of its employees in Latin America last November while the company was struggling to generate revenue. It also announced at the beginning of the year close two greenhouse cultivation sites in British Columbia, Canada, in part to shift toward outdoor cultivation.