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Canopy cuts 60pc of jobs, citing thriving black market

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The scaling back of Canada’s second-largest pot producer is the second restructuring in less than 12 months.

Together with job cuts announced in April, Canopy estimates it can save as much as $C310 million and be profitable, helping it become the right size for Canada, and enter the US through Canopy USA.

“Today, there are two very different cannabis markets in Canada. One that’s legal, highly taxed and regulated, and one that’s thriving and illicit,” he said, estimating that the black market represents about 40 per cent of Canada’s overall cannabis sales. Canopy’s complaints about competition from the black market echo those made in California and other US states, as the marijuana industry lobbies for tax cuts, the ability to open more locations and other regulations that could favour it.

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