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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index gained 1.36 points to 153.83 Tuesday, while the Canadian Securities Exchange Composite Index gained 3.72 points to 383.35. Aurora Cannabis Inc. (ACB) fell 15 cents to $8.40 on 5.25 million shares after announcing significant layoffs. The company said it will lay off 25 per cent of its administrative staff and 30 per cent of its production staff, later confirming to BNN Bloomberg that a total of about 700 people were laid off. Further, the Alberta-based cannabis producer plans to close five of its smaller facilities in Quebec, Saskatchewan and Alberta over the next two quarters.
For Aurora, it is a continuation of the last few months, during which the company has been focused on cutting selling, general and administrative (SG&A) expenses. Aurora interim chief executive officer Michael Singer says these cuts will get the company down to SG&A expenses of about $42-million for fiscal Q1 2021 (which runs from July 1 to Sept. 30). Given that the company had SG&A expenses of $99.8-million in fiscal Q2 2020 (which ended Dec. 31, 2019), Aurora has indeed been able to tidy up its costs quickly.
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