SNDL Inc. SNDL has initiated a headcount reduction of approximately 85 employees at the Olds, Alberta facility as a part of a larger phased cost savings program that is expected to deliver close to $9 million in savings across labor and operational costs. The cost savings initiatives are expected to position SNDL to exceed its integration savings target as a result of the acquisition of The Valens Company.
SNDL expects to complete most of this transition within the first quarter of 2023, and the cost savings will be immediately accretive to adjusted EBITDA. The company expects to report record net revenue and net cash provided by operating activities for the fourth quarter of 2022, with the year-end and fourth quarter of 2022 results expected to be announced at the end of March 2023.
A Growing Industry Trend
SNDL is not the only company letting workers go. Many cannabis companies have recently handed out pink slips to workers as part of cost-saving measures.
Canopy Growth Corporation CGC intends to close its 1 Hershey Drive facility in Smiths Falls, Ontario, in addition to reducing headcount across the business by approximately 60%.
Curaleaf Holdings, Inc. CURLF submitted its WARN notice to the Colorado Department of Labor & Employment, revealing that 47 employees will be laid off.
Tilray Brands TLRY announced in January, it will lay off 49 employees at medical cannabis cultivation and manufacturing facility in Cantanhede, Portugal.
Columbia Care Inc CCHWF is laying off numerous workers at its Saxton facility, per data from the Department of Labor & Industry; 73 employees will be let go effective February 28.
LeafLink, an online wholesale cannabis platform, laid off 80 workers on December 15th.
WM Technology Inc. MAPS cut 25% of its workforce, amounting to 175 employees.
Trulieve Inc. TCNNF laid off an unspecified number of workers at its McKeesport growing facility in Pennsylvania.
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