Cannabiz Australia reports on what’s euphemistically called an “organisational review” at Althea
Business News Australia has further details
Australian-founded medicinal cannabis company Althea Group (ASX: AGH) has announced staff redundancies that have shaved $1.5 million from its cost base as the first phase of a planned restructure in the wake of a challenging time for the sector.
Althea, which has operations in Europe, North America and Africa as well as Australia, says further initiatives are also under way to cut overheads expenses and optimise its supply chain to enhance cashflow management.
The move follows material uncertainties raised about Althea and Cann Group (ASX: CAN) earlier this month after the companies, which are among the largest medicinal cannabis groups listed on the ASX, incurred December-half losses of $16.6 million and $14.3 million respectively.
In tandem with its latest half-year result released in February, Althea announced that it had completed an “extensive organisational review” that had identified cuts to its administrative, operational and supply chain expenditure.
While the results of the review were scant on details, the company today reveals that it has successfully completed phase one of its cost-reduction program, which largely focused on restructuring staff – a move that will generate annual savings of about $1.5 million.
Althea has not detailed how many jobs it has cut from its team which comprises more than 100 globally.
BREAKING NEWS: Althea announces job cuts worth A$1.5m with more savings to come
