SNDL Layoffs: 106 full-time jobs cut in $11M ‘restructuring project’

What’s happening at SNDL?

Calgary-based cannabis retailer SNDL is cutting 106 full-time positions, reflecting ongoing challenges in Alberta’s legal cannabis sector.

Official statements and context

In a press release, SNDL detailed the goals of its restructuring project, aimed at reducing corporate overhead and enhancing organizational efficiency.

• The company anticipates $20 million in annual savings from this effort, which will involve a one-time investment of $11 million over the next 18 months.
• SNDL CEO Zachary George emphasized the company’s commitment to streamlining processes and leveraging technology to improve operational effectiveness.
• SNDL operates several outlets including Value Buds, Firesale Cannabis, Spiritleaf, Ace Liquor, and Liquor Depot. As of December 31, 2023, the company and its subsidiaries employed 2,516 people, according to U.S. securities filings.

The cannabis industry has faced numerous layoffs and restructurings in recent years. In February 2023, SNDL cut 85 jobs, following similar moves by other Alberta-based companies like Aurora Cannabis, which reduced its workforce by 12% and closed three facilities in June 2022. Canopy Growers in Smiths Falls, Ontario, also announced significant layoffs, cutting 800 jobs and shutting down a major facility in February 2023.

Industry leaders cite high government taxation, stringent regulation, and a thriving black market as primary challenges since the legalization of recreational cannabis in October 2018. Additionally, an oversupply of cannabis has led to a steep decline in product prices and intense competition within the market.

Your rights

In Canada, non-unionized employees at SNDL are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts at SNDL come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, WillScot of Canada, Netflix, McKinsey & Co, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.