Cannabis producer Tilray Inc. (NASDAQ:TLRY) is laying off 10% of its global workforce in an effort to become profitable.
“By reducing headcount and cost, Tilray will be better positioned to achieve profitability and be one of the clear winners in the cannabis industry, which will drive value for our investor and employee shareholders,” said Brendan Kennedy, Tilray’s Chief Executive Officer.
Tilray has approximately 1,400 staff worldwide, which includes employees in Canada, Germany, Portugal, Ireland, the United States, Australia and Czech Republic. The layoffs include 35 people in Tilray’s Toronto headquarters. Most of the Toronto layoffs were focused on Tilray’s marketing and creative departments.
Tilray has suffered from lower-than-expected revenues amid an oversupplied market and sluggish rollout of retail stores across the country. In November, Tilray reported a third quarter net loss of $35.7 million U.S. on $51.1 million U.S. in revenue.
Sales of recreational cannabis in Canada were $15.8 million U.S. in the quarter, up just $700,000 U.S. from the prior three-month period, the company said. The company attributed its losses to higher operating expenses and the expansion of its international businesses.