In February of last year, SNDL announced it was cutting 85 jobs
Calgary-based cannabis producer-retailer SNDL says it’s once again pruning its workforce as part of a money-saving restructuring effort.
On Tuesday, the company once known as Sundial Growers said it’s trimming 106 full-time positions, the latest slim-down for the firm and one in a long line of such moves within the Alberta-based legal cannabis sector.
In a press release, SNDL said the “restructuring project (is) aimed at reducing corporate overheads and improving the efficiency of its organizational structure to position the company for future growth.”
It goes on to say the effort is expected to result in $20 million of annual savings “driven primarily by the optimization of corporate overhead spending. The restructuring will require a one-time investment of $11 million over the next 18 months.”
The restructuring will consolidate the company’s operations into a single unit, said Zachary George, CEO of SNDL.
“We are committed to enhancing our organizational effectiveness by streamlining processes while leveraging technology and automation,” he said.
While a licensed producer, SNDL is also one of the largest cannabis and liquor retailers in Canada, operating outlets such as Value Buds, Firesale Cannabis, Spiritleaf, Ace Liquor and Liquor Depot.
According to their U.S. securities filings, the company and its subsidiaries employed 2,516 people as of Dec. 31, 2023.
Cannabis industry has seen layoffs over the years
That followed another blow to Alberta’s pot industry when Edmonton-based Aurora Cannabis trimmed off 12 per cent of its workforce in June 2022, a restructuring effort after announcing it was closing three of its facilities.
Those job losses in the industry extended outside Alberta when Canopy Growers of Smiths Falls, Ont., announced in February 2023 it was laying off 800 employees — 35 per cent of its workforce — and shuttering its facility, formerly a Hershey plant.
But there have also been admissions that some companies have over-extended themselves.
Last March, the final report of the review of the federal Cannabis Act was released but many in the industry say its 54 recommendations and 11 observations fall far short of ensuring their problems are addressed.
The review panel encourages the federal government to review its excise tax model that was created at a time when the price of dried cannabis flower was significantly higher than it is today.