Calgary, Alberta-based SNDL is cutting 85 jobs as a part of a plan to deliver approximately 9 million Canadian dollars ($6.7 million) in cost savings, making it the latest Canadian cannabis firm to cut staff.
CEO Zach George said in a Monday announcement that SNDL made the decision to ax staff and activity in Olds, Alberta, to improve efficiency, citing massive overproduction in the Canadian market.
“We estimate that more than 1 billion grams of flower are sitting in Canadian vaults today,” George said.
“Oversupply and excess capacity have resulted in high-quality flower being widely available and sold well below the marginal cost of production.”
MJBizDaily previously reported that the total amount of stored cannabis by licensed producers, wholesalers and retailers had reached 1.4 billion grams (1,543 tons), citing the latest Health Canada data.
SNDL’s layoffs come as cannabis producers across Canada have shed close to 1,000
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