Hexo Corp. has said its ongoing restructuring plan to streamline the business and minimize costs includes downsizing by reduction of 450 jobs.
The Gatineau, Que.-based marijuana manufacturer said in financial filings that the reduction will bring about annualized savings of $30.6 million and will simplify its organizational structure such that costs are more closely aligned with the businesses’ size.
The latest management discussion and analysis paper of the company says most of the reductions will be realized by relying less on outside consultants, a new informational technology platform and synergies detected through recent acquisitions.
Also, the document says the company will close a processing and manufacturing facility in Belleville, Ont. at the end of July.
The company did not instantly respond to a request for comment on the reductions, which came at a time when Hexo announced that it lost about $147 million in its third quarter compared with the $21 million it lost in the third quarter of the previous year.
Its total revenue for the three months ended April 30 was around $46 million, an increase of around $23 million in the third quarter of 2021.
