By Ketki Saxena
Investing.com -- Canopy Growth (TSX:WEED) has announced it will restructure its operations in Canada, appoint a new head of Canadian operations, and lay off 55 employees.
“Through the changes announced today, our executive structure and operations are now more closely aligned with the areas of greatest opportunity and reflect Canopy Growth’s resolute focus on achieving profitability in Canada,” a company spokesperson said in an emailed statement.
“Together with our recently announced strategy for fast tracking entry into the U.S., these adjustments further position Canopy Growth to realize our ambition of North American cannabis market leadership.”
The restructuring of operations is Canada does not come as a complete surprise. Canopy had previously announced plans to divest its Canadian retail operations, and to form Canopy USA LLC, a new entity that will take the company’s U.S. investments.
The Canadian operations will now be treated as a standalone business unit, managed by Dave Peterson, the company’s new president of the division.
That’s not the only executive change announced at Canopy today: Julius Grant, the current chief commercial officer, will be leaving the organization.
Canopy, which is trying to stem losses and move into profitability, has been increasingly focusing on its US market, even while Federal legalization remains elusive. However, Canopy is betting on legalization sooner rather than later, in order to tap into a market expected to be over $50 billion by 2026.
$WEED shares are down 2.15% in the day’s trading so far today as of 1:00 p.m ET.