Is the Bubba Kuah bubble popping? Just last week, cannabis retail heavy hitter MedMen announced plans to streamline its businessby doing away with all cultivation and manufacturing. Now, another top-tier weed brand is implementing significant cutbacks.
Canopy Growth, the world’s largest cannabis company, announced on Wednesday its plans to shutter two cultivation facilities in British Columbia. As a result, the company will lay off 500 employees, according to CNN.
“Nearly 17 months after the creation of the legal adult-use market, the Canadian recreational market has developed slower than anticipated, creating working capital and profitability challenges across the industry,” the company said in the statement.
“Additionally, federal regulations permitting outdoor cultivation were introduced after the Company made significant investments in greenhouse production.”
As indicated, Canopy says it has an outdoor site that gives them a bit more bang for their buck. It may not, however, make up for all the bud from their indoor grows. CNN says that the two short-lived BC facilities make up more than half of their cultivation in Canada.Photo via Flickr/FreezeTimeDigital