TLRY stock is falling this morning after Tilray (NASDAQ:TLRY) said that it is laying off about 10% of its workforce to reduce costs.
Effort to Become Profitable
Many cannabis stocks may have rebounded in 2020, but there are many other companies that are still feeling the after-effects of the slowdown in the industry last year. One such company is Tilray. After the closure of the markets on Tuesday, the company announced its restructuring efforts.
Experts believe that the updates would not go down particularly well with the company’s shareholders. Tilray revealed that as part of a restructuring plan, it is trying to cut costs, and in order to do so, it is going to let go of 10% of its workforce.
The letter in question was from the Chief Executive Officer of the company, Brendan Kennedy. In the letter, Kennedy stated that the company restructured its ‘global organization’ so that it can be in sync with the current realities of the industry. The move from Tilray is apparently aimed towards generating further growth for the company this year and also in the future.
TLRY stock is down by over 1% at $17.94.
At this point in time, the company has 1,443 employees spread across Canada, Ireland, the United States, Portugal, Australia, Germany, and the Czech Republic. In its Toronto office, fewer than 35 people face the possibility of the sack.
Other than the announcement with regards to the layoffs, the company did not share any other details regarding its restructuring efforts. Tilray ended the first nine months of the year with a cash balance of $122 million, but at the same time, it also made losses to the tune of a staggering $103 million.
The company is going to release its financial results for the rest of 2019 soon, and if the results prove to be disappointing again, TLRY stock could be in for another hammering from market participants.
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