Atlas Global Brands Makes Changes 'Not Taken Lightly' - Reduces Its Workforce By ~20%

Zinger Key Points
  • Atlas Global Brands joins many cannabis companies that have recently laid off employees as part of cost-saving measures.
  • Operational synergies from corporate restructuring estimated to generate $2.5 million in annualized savings.

Atlas Global Brands Inc. ATL has taken the necessary steps to leverage the combined capabilities across its six businesses following the completion of a business combination, involving Atlas Biotechnologies Inc., AgMedica Bioscience Inc. and Cambrosia Ltd. and the concurrent acquisition by Cambrosia of a 51% interest in each of Tlalim Pappo Ltd., Pharmacy Baron Ltd., and R.J. Regavim Ventures Ltd. – privately held operating cannabis pharmacies in Israel by reducing its aggregate workforce by approximately 20% and implementing a plan to reduce overlapping third party spending across the group.

“The actions taken today were necessary to align our operational strategies and unlock a sharing of best practices across our newly formed organization,” stated Bernie Yeung, CEO of Atlas Global. “These changes were not taken lightly but were necessary to enable the organization to move forward in a more cohesive manner, allowing us to accelerate our growth plans on the international stage through operational efficiencies.”

By leveraging the combined capabilities of the six operating units, the combined effect of workforce reduction, and elimination of cost redundancies is estimated to generate savings of $2.5 million on an annualized basis over the ensuing 12 months, streamline the company’s operating model and align with the company’s overall international growth strategy.

Layoffs Are Happening Across The Industry

Atlas Global Brands joins many cannabis companies that have recently laid off employees as part of cost-saving measures.

  • IM Cannabis Corp. IMCC will be reducing its workforce in Israel by 20%-25% across all functions.

  • Trulieve TCNNF fired an unknown number of employees at a customer call center in Clearwater in February.

  • Aleafia Health ALEAF revealed via its February-released earnings that it had to let go 20% of its workers.

  • 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.

  • Canopy Growth Corporation CGC its 1 Hershey Drive facility in Smiths Falls, Ontario, in addition to reducing headcount across the business by approximately 60%.

  • Tilray Brands TLRY announced in January, it will lay off 49 employees at medical cannabis cultivation and manufacturing facility in Cantanhede, Portugal.

  • Clever Leaves CLVR recently confirmed the wind-down of all operations in Portugal as part of its ongoing restructuring initiatives, under which it had to lay off 63 employees.

  • 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.

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Photo by Jeff W on Unsplash

 

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Posted In: CannabisNewsPenny StocksSmall CapMarketsAgMedica Bioscience Inc. and Cambrosia Ltd.Atlas Biotechnologies Inc.Atlas Global BrandsBernie Yeungpremium
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