The coronavirus pandemic has left the markets crashing, bringing heaps of damage to various industries. The cannabis industry is no exception to this. Organigram Holdings (TSX:OGI) (NASDAQ:OGI), a cannabis company, saw its shares plunging to around $3 and even lower than $2 from their highs during the sell-off.
Further, the pandemic outbreak has also pushed the company to announce a layoff of 45% of OgraniGram’s workforce. The announcement came to post the company’s previous announcement of letting go material amount of employees, and the layoff consisted of mostly voluntary layoffs and began on March 24th.
This means over 400 employees of the company from different areas of operations were let off. Few segments of the business were considered non-essential, whereas, in certain departments, the voluntary layoff was offered. The company further said that it would put its efforts at monitoring the situation so as to proactive.
The company’s CEO Greg Engel claimed that the company would prioritize making strategic decisions that would be in the best interest of its people and would ensure the long-term sustainability of OrganiGram. The company has said that it will pay a lump sum money until the government’s funding comes through to those affected so as to help them deal with tough times as these. The workers of the company would also be supported by employee health benefits from the management.
The management of the company stated that OrganiGram would have reduced operations of cultivation, harvest, production, and packaging due to the reduced workforce (a result of the Covid-19 crisis). The in-house inventory of the company would be used until the cultivation and other operations of the company go back to normal.
What remains unclear is the extent of delay in the launch of the company’s new powdered beverages and Ankr Organics. Despite the tough times, OrganiGram has managed to maintain a healthy balance sheet alongside a lean, profitable business model.