Moncton-based Organigram cuts 220 from workforce

Moncton-based cannabis producer Organigram Inc.has cut 220 of its workers, most of whom were temporarilylaid off earlier.

The company said Friday thatit's reducing its workforce by 25 per cent to cope with COVID-19 and"the continuing evolution of the Canadian cannabis industry."

A small number of the 220 people let go were not on temporary layoff, a release from Organigramsaid.

This leaves the company with433 active employees workingout of the company'sindoor production plant in Moncton.

Organigram did not respond to a request for comment.

On April 6, the company announced it would temporarily lay off 45 per cent of its workforce.

Organigramnow has a total workforce of 609 employees, including workers outside Monctonand84 employees still on temporary layoff. The news release said those employees"may be recalled if and when needed."

"These decisions are never easy to make,"Organigram CEO Greg Engel was quoted saying in the release.

"We are incredibly grateful for the commitment that our affected employees have made in helping build the company that Organigram is today."

Roy Woodford said he worked for the company over a year as a team leader in the propagation department.He said that at around 8:45 a.m. Friday, the company sent an email to him and others on temporary layoffs saying they've been permanently cut.

I had to shed a few tears over the time that I'm not going to be spending there.- Roy Woodford, employee who lost job

He was"a little disappointed," he said. "But I completely understand where they're coming from in the current economy."

Woodford said he's been on employment insurance since he was temporarily laid off in late March, but he was still receiving insurance benefits, and the company was stillallowing employeesto pay into their accidental death benefit.

He said losing his medical benefits is "abit of a blow," since he has diabetes, but he said he's lived with the condition for a long time.

He wasn't expecting the news hewas losing his job, "byany stroke of the imagination,"but he hopes to be added back to the workforce once the company bounces back.

"All those who were laid off are given the option to be added to a priority hire-back list," he said.

Organigram said it can still meet demand with the reduced workforce.

The release said the company will be producing less cannabisand is expecting a decline in revenue.It's also expectinga decrease in non-production-related expenses, such as administrative costs.

Woodford said what he'll miss the most is the sense of community within the workplace.

"I had to shed a few tears over the time that I'm not going to be spending there," he said. "But I'm among those people that believe firmly that within my lifetime I'll return to Organigram, I'll get back to my position."

Organigram produces indoor-grown cannabis for patients and adult recreational consumers in Canada.