Israel-based IM Cannabis Corp. (Nasdaq: IMCC) (CSE: IMCC) announced Wednesday it will lay off at least 20% – and perhaps up to a quarter – of its employees in its Middle East home nation, in a restructuring push toward profitability.
“The company will be reducing its workforce in Israel by 20%-25% across all functions,” IM Cannabis stated in a press release, adding that the staff reductions and the corporate restructuring should be completed by midyear.
“The restructuring initiatives announced today follow our departure from the Canadian cannabis market to focus our resources on growth opportunities in Israel, Germany, and Europe,” CEO Oren Shuster said in the release.
“It further reflects our determination to continue with our strategic plan by maximizing efficiencies to create a leaner and more flexible organization to better suit the current market environment and our short- to mid-term objectives,” Shuster said.
Shuster projected cost savings of about CAD$3.5 million, or $2.5 million, thanks to the layoffs.
In addition, the company announced several C-suite changes in both IM Cannabis Corp. and various subsidiaries, including:
- IM Cannabis Corp. CFO Shai Shemesh will hand the financial reigns to incoming CFO Itay Vago, former finance director at Israeli subsidiary IMC Holdings Ltd.
- IMC Holdings CEO Rinat Efrima will be replaced by Eyal Fisher, who will become the new general manager of IMC.
- Yael Harrosh, chief legal counsel and COO at IM Cannabis Corp., has been named to lead the restructuring push and will be replaced by a new general counsel.