The company said it has realized $28 million savings through layoffs and facility sales.
Canada-based BZAM Ltd. (CSE: BZAM) (OTC: BZAMF) announced another round of layoffs despite the completion of its merger with The Green Organic Dutchman. The company let go more than 90 employees at two of its facilities in British Columbia and Ontario as part of its long-term plan to turn around the fortunes of both businesses.
The layoffs were a final piece of the new company’s restructuring plan following the merger, BZAM said in a statement, which called for a serious reduction in operating expenses.
Prior to the merger last year, the two companies employed a total of 670 workers; that’s been pared down to 395, according to a release.
“It is no secret that the Canadian cannabis industry needs to work through a period of consolidation,” CEO Matt Millich said in the statement. “While not an easy road, we are proud to be one of the companies leading the charge – and demonstrating what is possible when two consumer favorites combine, focus on sales and our customers, while shedding costs and streamlining operations. The changes we have implemented following the merger position the company to thrive in both the Canadian and international markets going forward.”
The layoffs, along with the sale of four of the company’s facilities across Canada, have delivered savings of $28 million, the company estimated, which will help it pay down its $29 million in debts.
BZAM already sold one facility in Puslinch, Ontario, and another in Midway, British Columbia, and is under contract to sell a third in Maple Ridge, British Columbia, for $3.8 million. A fourth facility is listed for sale in Edmonton, Alberta, for $10.8 million.
BZAM has also, since last year’s merger completed, effectively cut quarterly SG&A expenses by $7 million, it reported, which it estimates to be an annual savings of $20 million to its budget this year.
In addition, BZAM will be expanding its product line even further, with the launch of 11 new products in the fourth quarter this year and another 20 in the first quarter of 2024.
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