Aurora Cannabis to close Aurora Sky facility in Edmonton

Aurora Cannabis announced Thursday, that it would close its Aurora Sky facility in Edmonton as part its cost savings plan.

“We will continue to employ a talented team in Alberta, operate an Edmonton office and remain committed to our business in Canada as a whole,” Aurora Cannabis’ vice president of communications Michelle Lefler told Global News in an email.

“This decision was not taken lightly. To meet the challenges and opportunities in the cannabis industry, the company will continue to make hard but responsible changes to optimize the business and position Aurora for long-term success worldwide.

“Our patients and consumers in Alberta can continue to rely on Aurora as a provider of premium cannabis they trust,” Lefler wrote.

“Aurora’s roots will always be in Alberta. We are grateful for the continued support from Albertans to our business. Our most important goal is to recognize and thank our employees for their hard work.

“During this transition, we are committed to supporting all employees who are impacted by this decision and will provide a full suite of resources to assist them.”

Aurora Cannabis opened its Edmonton headquarters in 2018.

The Edmonton-based company announced job losses in December 2020. The workforce at Aurora Sky near the Edmonton International Airport — one of the world’s largest cannabis facilities — was scaled back by 75 per cent. This meant that 214 workers were laid off.

In September 2021, the company announced it was closing its Aurora Polaris property in Edmonton as part of a plan to streamline its operations.

Aurora Cannabis presented plans Thursday to save an additional $70-$90 Million by the end 2023 H1 fiscal.

Its efforts to save costs of goods sold “now include the closure of the Aurora Sky facility in Edmonton (previously announced to be operating at approximately 25 per cent capacity), in keeping with our diversified business portfolio, prudent approach to capital allocation, and our strategy in the Canadian adult-use market to focus on higher margin premium categories,” the company’s news release said.

The fiscal update showed Aurora Cannabis’ medical cannabis net revenue was up eight per cent from the year before. According to the company, this revenue growth was due to the international medical marijuana business.

Its consumer cannabis net revenue decreased to $10.3 million from $14.4 million the previous quarter, due mainly to “industry-wide pricing pressures across our portfolio and exacerbated by retail store closures in key provinces.”

“During Q3, we continued focusing on our global medical cannabis business because it is both defensive and stable, with cash gross margins that exceed 60 per cent,” CEO Miguel Martin said in Aurora’s news release Thursday.

“In terms of the Canadian adult-use market, we continue to adjust to current conditions, are excited for future contributions from the Thrive team, and are committed to a continuous stream of innovation, including advancing our premiumization strategy.”

In November 2020, Aurora Cannabis saidIt indefinitely halted operations at its Aurora Sun property, Medicine Hat. This decision would result in approximately 30 layoffs.

In June 2007, 700 workers were laid off by the company and five facilities in Saskatchewan, Ontario and Alberta were to close down.