- CubicFarm Systems (CUB) released a list of cost-cutting measures in an effort to speed up its path to profitability
- The British Columbia agricultural technology company has now given termination notice to 87 employees or 50.4 percent of its workforce
- The move translates to an estimated annualized savings of $15.6 million
- Overall, the company is reducing operating expenses by $9 million, consisting of $6.4 million of payroll-related expenses and $2.6 million of non-payroll-related expenses
- CubicFarm Systems is down 2.7 percent, trading at $0.18 at 12:35 pm ET
CubicFarm Systems (CUB) released a list of cost-cutting measures on Monday in an effort to speed up its path to profitability.
The British Columbia agricultural technology company has now given termination notice to 87 employees, or 50.4 percent of its workforce. The move translates to an estimated annualized savings of $15.6 million, or 50.3 percent of cash-based operating expenses on a 12-month basis.
The company has been working closely with its board of directors to prioritize its lines of business.
To focus on key ongoing strategic initiatives and realign its corporate structure, the company is further reducing operating expenses by approximately $9 million on an annualized basis, consisting of $6.4 million of payroll-related expenses and $2.6 million of non-payroll-related expenses.
“Today was a tough day at CubicFarms because exceptional people will be leaving our company. I am grateful to each person for what they have contributed; their world-class talents will continue to have positive ripple effects, not only in our company but for the future of ag-tech, and we owe them a debt of gratitude,” said interim CEO Edoardo De Martin.
“Going forward, CubicFarms will operate and succeed as a nimble, cost-conscious business, driven by disciplined growth and data from key strategic initiatives. In particular, our HydroGreen systems put us in a great position with on-site US-based manufacturing capability and an expanding dealer network, giving us immediate access to the farm and cattle industries where there is strong demand for our technologies. We must conserve agricultural resources such as land, water, and energy using innovative indoor growing technologies. Farmers around the world want nutritious livestock feed for their animals, and they need innovative solutions to address drought, water shortages, and land scarcity issues. As climate change, persistent drought, and long supply chains continue to disrupt populations and economies, the demand for our on-farm solutions has never been greater.”
CubicFarm Systems is down 2.7 percent, trading at $0.18 at 12:35 pm ET.
