Tilray Inc (NASDAQ:TLRY) has communicated several of the changes it is making to several financial news outlets. The business guru made its statement via email after the close of the market on Tuesday.
Laying off employees
This cannabis producer lay off about 10% of its workers in a bid to cut down on its operational costs. This global restructuring effort is being looked at as a way for the company to ease the tension among its shareholders. The investors in the company have been closely monitoring its performance, with some expressing satisfaction with the turn of events.
The cutting down of the company’s workforce is one of the many moves the company will be resorting to in a bid to regain stability.
November was an important month that considering that it was the point the shareholders learned about the company’s operating costs for 2019. Such instances have always been important for investors who decide about the best time to make investments.
Shareholders and the concerned parties aware of the company’s moves have shown mixed reactions. There is a section that sides with the company saying that the decision was necessary. However, there is the second lot that belives the company should have resorted to something other than terminating the services of the dedicated workers.
Tilray has been quick to defend its decision outlining that it was in the best interest of the company and the shareholders. According to it, there were always times that called for the making of some difficult choices and that this was one of those moments.
Analysts following closely on the matter have also aired out their views. They take the strong stand that the business guru was trying its best to soften the landing, and that is in line with the earnings reports.
The earnings were not impressive for the company, and that is the reason it took a drastic measure. Most of the analysts are not in support of the decision that led to about 140 employees losing their employment. They think that it paints the company in a bad light and believes there were better alternatives that the company should have looked at.