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Canopy Growth’s downsizing leaves Smiths Falls, a once-booming Ontario town, in limbo
A significant number of residents are without work, planning their next move in a town of almost 10,000 that has no other large employer
www.theglobeandmail.com
It’s a gut-wrench for many Canopy workers, especially those born and bred in Smiths Falls. They’re familiar with this story arc: Big company comes to a small town, creates hundreds of full-time jobs, town goes through a boom period, company struggles with profitability or finds a cheaper source of labour, local jobs are slashed, company exits.
It happened in 2007 with the closing of the Hershey chocolate factory that once occupied the same premises that Canopy’s factory currently does – 1 Hershey Dr., a Smiths Falls landmark. Globalization was the catalyst. Hershey sought out Mexican labour for a fraction of the cost and 700 full-time, mostly unionized jobs were lost.
Sixteen years later, the town’s workers seem to have fallen prey to the industry-specific woes of the cannabis sector – a result of oversupply, static domestic demand, unwieldy regulation that cannabis producers say have hampered efficiency, and, to an extent, poor management. 1 Hershey Dr. will be shut down again by the summer, Canopy announced two weeks ago, with approximately 500 employees remaining at a post-production site across the street. Canopy’s Smiths Falls work force will effectively have been whittled down from roughly 1,800 employees at the height of the cannabis boom in 2018.
Whatever the reason for companies downsizing, the outcome for small communities always appears to be the same. A significant number of residents are without work, planning their next move in a town of almost 10,000 that has no other large employer.