The global legal marijuana market could grow at a compound rate of 25% by 2030, according to Grand View Research. One-time investor favorites Canopy Growth (NASDAQ: CGC) and Aurora Cannabis (NASDAQ: ACB) have seen their stocks dip more than 90% in the last three years. Aurora and Canopy have been in pursuit of positive earnings before interest, taxes, depreciation, and amortization (EBITDA) for quite a while now, but have failed to reach their goal.
Aurora Cannabis (NASDAQ: ACB) announced in early June an additional round of cost-saving measures as part of its business transformation plan that has already brought on major adjustments to the company in the past two years. Aurora's shares dropped throughout June after it bought back millions of dollars in convertible debt, announced it would close a major facility, and laid off a huge chunk of its workforce. All this is bad news for the international cannabis operator -- but a strong showing in Europe's medical cannabis market, and its major presence in Canadian medical cannabis, should provide long-term hope amid the short-term gloom.
There have been a slew of high profile layoff announcements in recent weeks as CEO's prepare for what they expect to be a tough economic road ahead. While the electric vehicle maker will increase its hourly worker headcount -- those Model 3s aren't going to build themselves after all -- the layoffs will affect about 3.5% of the company's workforce. This round of layoffs comes just weeks after the company laid off 150 employees, including executive-level employees at its Drama Series, Spectacle and Event TV, and Comedy Series Divisions.