Canopy Growth laying off 800 in 2023, closing several locations

Canopy Growth is laying off 800 employees this year in a move that will also result in the closure of a key facility and streamlining of its operations.

The Canadian cannabis producer, based in Smith Falls, Ontario, said on Feb. 9 that the reduction represents 35 per cent of its total workforce, and will occur over the next few months.

CEO David Klein told The Canadian Press that the decision was made due to concerns about the company’s profitability and long-term growth.

“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership,” said Klein.

The move comes a few months after Canopy Growth announced that it was cutting 55 jobs as it restructures its Canadian operations.

According to LinkedIn, the company currently employs more than 1,100 people.

Major layoffs continue

The reduction at Canopy Growth comes amid a flurry of layoffs to kick off 2023.

Big names, including Alphabet, Dell, Best Buy, Hudson’s Bay, Microsoft, Amazon, and Salesforce, are scaling back their staffing levels as they continue to monitor market conditions.

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Closures and consolidation

The following facilities will be affected by Canopy’s announcement:

• 1 Hershey Drive in Smith Falls, Ontario, the company’s headquarters and main site for flower and edibles production, will be closed.
• 99 Lorne Street, across the street from 1 Hershey, will take on flower activity and continue to serve as a regional distribution centre.
• Canopy will no longer source flower from a Mirabel, Quebec facility, which is owned by Les Serres Vert Cannabis.
• Cultivation will be consolidated at its Kincardine, Ontario and Kelowna, B.C. locations
• The cannabis company’s genetics program will now be managed by Quebec-based EXKA, which hosts the world’s biggest cannabis library.

Rights when facilities are closed or consolidated

The closure of an office or facility can impact employees in a few different ways:

• Termination with full severance pay: If an employee loses their job because their workplace is closed, they must receive a full severance package from the employer. Proper compensation can be as much as 24 months’ pay depending on various factors, but can also consist of working notice.
• Relocation to a new workplace: An employer may decide to move employees to a new work location. This is something a company can’t do if the change makes the commute longer or more difficult for an employee. A worker can treat the change as a termination, and get severance pay through a constructive dismissal claim.
• New job or duties: A company may give some employees new roles, duties or reduced pay if their original job is impacted by closures. It is illegal for an employer to make significant changes to someone’s job. This can also result in a constructive dismissal and proper compensation.

If you are an employee at Canopy Growth, and your job is affected by these latest layoffs or changes, contact an employment lawyer at Samfiru Tumarkin LLP immediately to find out what your options are.

Termination agreements for Canopy Growth employees

In Canada, non-unionized employees of all types at Canopy Growth are owed full severance pay when they lose their jobs due to downsizing, closures or restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Severance pay for cannabis industry employees
• Rights to severance for provincially regulated employees

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.