Aurora Cannabis Inc. ACB continues to trim its workforce as it seeks to achieve profitability.
The Edmonton, Alberta-based cannabis giant confirmed in an email to Marijuana Business Daily that the cutting of 12% of its global workforce will result in additional cost savings worth up to CA$90 million ($69 million).
“Today we delivered against that commitment as we announce a corporate reorganization that will allow Aurora to operate as a leaner, more agile, and future-focused company, fit for success in the evolving global cannabis industry,” a spokesperson said Tuesday. “Aurora continues to make substantial improvements to our business as we work through the phases of our transformation plan, designed to deliver shareholder value, and secure Aurora’s future as a leading global cannabis company.”
Aurora’s ‘Business Transformation Plan’
For over two years, the company has been undertaking its ‘business transformation plan‘ which included cost efficiency initiatives and efforts to improve its balance sheet, following the retirement of former CEO Terry Booth.
In September, the company announced that it was closing its Edmonton, Alberta-based facility, affecting roughly 8% of its global workforce at the time. An adjacent factory called Aurora Sky took over the medical distribution from the Aurora Polaris facility that had been shut down. In addition, manufacturing operations were transferred to the company’s Aurora River factory located in Ontario.
As of late September, Aurora had 1,643 employees, even though the company said that’s not the exact figure keeping in mind additional closures of facilities and business restructuring.
“We deeply thank those who were impacted for their important contributions to Aurora’s growth,” the spokesperson said.“All Aurora employees will be fully supported as they transition from the company.”
Q3 Financial Results & Analyst’s Take
The company reported financial and operational results for the third quarter of fiscal 2022 in May, revealing a 17% sequential decrease in revenue to $50.4 million.
Cantor Fitzgerald’s analyst Pablo Zuanic said the quarter ended March 31 was the second-lowest of the last seven quarters.
Still, Miguel Martin, CEO of Aurora, says that “our plan is working and we remain firmly on track to achieving a positive Adjusted EBITDA run rate by the first half of fiscal 2023.”
In the third quarter, adjusted EBITDA loss declined to $12.3 million versus $9 million in the prior period, but narrowed from $20.9 million in the prior-year period.
Aurora’s shares traded 1.55% higher at $1.31 per share during the pre-market session on Thursday morning.
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