In an effort to reduce costs and improve profitability, Canopy Growth Corporation (CGC) announced that the company is undertaking a series of new initiatives. Canopy Growth Corp. is conducting the following actions:
- Reducing the cost of goods sold (“COGS”) in the Company’s Canadian cannabis business by lowering per-gram cultivation costs through increased cultivation-related efficiencies and facility improvements;
- Implementing a flexible manufacturing platform inclusive of contract manufacturing for certain product formats;
- Rightsizing indirect costs and generating efficiencies across the Company’s supply chain and procurement;
- Aligning selling, general and administrative costs (“SG&A”) with short-term business expectations by reducing third-party professional fees and office costs; and
- Further streamlining the organization to drive process-related efficiencies.
“To realize profitability and power growth, we are taking critical actions to further evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential of success. These necessary changes are being implemented to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company.” – said David Klein, Canopy Growth Chief Executive Officer.