Hexo Corp. HEXO, +8.41% said Wednesday it is cutting 180 jobs, as part of the Canada-based cannabis company’s cost-cutting plan. The layoffs represent about 14% of the company’s workforce, which was about 1,277, according to the latest FactSet data. Half of the layoffs are result of the previously announced closure of its Stellarton facility, and the rest are related to the reduction of back-office positions.
Hexo said the cuts will lead to annual savings of about C$15 million ($11.8 million). “Today’s announcement was not an easy one to make. We are working with all impacted employees to the best of our ability to ensure that they are treated fairly and provided the support necessary to assist with this transition,” said Chief Executive Scott Cooper. The U.S.-listed stock rose 6.8% in afternoon trading to 69 cents. In late-January, the company said it received notice from the Nasdaq that it was not in compliance with the minimum-bid listing requirement, as the stock has closed below $1 since Dec. 10. The stock has plunged 56.9% over the past three months, while the Cannabis ETF THCX, +6.95% has slumped 38.1% and the S&P 500 SPX, +1.45% has eased 2.1%.