The coronavirus pandemic has hit many businesses in a particularly hard manner, and in this regard, the cannabis sector is no exception. In a new development, Organigram Holdings (TSX:OGI) (NASDAQ:OGI) announced that it is going to temporarily layoff 45% of its employees in light of the coronavirus pandemic.
In order to follow the social distancing norms, the company is laying off around 400 members of its staff. In addition to that, Organigram went on to announce that some of the employees who have been laid off have also been offered voluntary layoff packages. The majority of those who have been laid off took the option of that package.
The company also stated that it has enough inventories at this point to take care of the demand for its products. Employees who can continue to do their job from home have also been directed to do so. On the other hand, Organigram has also introduced extensive sanitary measures at the different facilities it owns.
Hand sanitizing stations have been installed, and the cleaning, as well as sanitizing activities at those facilities, has been increased. Organigram is one of the more promising companies in the cannabis space, and it remains to be seen whether these measures have an effect on the company’s stock or not.
In January this year, the company released its financial results for the first fiscal year of 2020, and the numbers proved to be impressive. Organigram generated net revenues of C$25.2 million, which represented a rise of as much as 54.4% from the previous quarter.
The markets were excited by that performance, and the stock had soared by as much as 30% following the announcement of the earnings. However, the Organigram stock has given up much of those gains now. Since the middle of January, the stock has declined by as much as 45%. The fiscal second-quarter financial results are expected to be released on April 14.