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Alberta Cannabis Producer Lays Off 10% Of Workforce; Expert Blames Poor-quality Products

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Alberta-based cannabis producer Sundial confirmed Tuesday that it has laid off “less than 10 per cent” of its workforce.

In a statement to Global News, it said: “In the spirit of continuous optimization for efficiency and effectiveness, Sundial has made some organizational changes… It’s important we remain agile in responding to the realities of the evolving cannabis market.”

Sundial did not confirm how many people 10 per cent equated to.

Low product quality

A cannabis expert said supply is not the problem — it’s product quality.

Maurizio Terrigno, founder of the Canadian Cannabis Chamber, said the main question is: Are you able to produce a high-quality product at a low cost?

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Cost overruns, crop failures and inefficiencies are hurting Sundial, he said, adding its products are “average at best.”

“When you overspend and you’re not making your requirements and you’re not meeting your targets, the first people to go — you cut back on your staff,” he said, adding that this happens in any industry.

“There’s a lack of quality people to grow a high-quality product in this industry and everything flows downhill after that… That’s what’s stifling this industry: no one could produce high-quality cannabis. They can, but most people are spending too much money to do so. Effectively, what we’re looking for is high quality, low-cost. Sundial has not been doing that.”

Sundial Cannabis has laid off “less than 10 per cent” of its workforce. File/Global News Money mismanagement and lack of variety

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Source: https://globalnews.ca/news/6443913/sundial-layoffs-alberta-cannabis/

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