The Quebec company Goodfood eliminated about forty positions in its Montreal facilities a few weeks after revealing a net loss of $20.6 million in the second financial quarter.
Last month, management sent a notice of collective dismissal to the Ministry of Labour, Employment and Social Solidarity. The 39 employees targeted in Saint-Laurent found themselves unemployed on April 5.
The ready-to-cook meals and grocery products specialist, which has 249,000 active customers, has also closed its distribution center in Ontario, The Logic recently reported.
The latter estimated at 70 the number of workers dismissed in April as part of a third round of layoffs since October.
Since August, more than 20% of the workforce has been cut. Goodfood now has around 2,500 workers. Management did not return our interview requests.
Different problems
In recent years, the company has experienced various problems, as the craze for ready-to-cook has increased during the pandemic.
In 2021, The newspaper wrote that Goodfood was notably struggling with logistical difficulties. Customers have complained about delays in their orders. Communications with the company were also difficult.
Several changes have also been made in recent months among members of senior management and the Board of Directors.
victim of inflation
In its second fiscal quarter, which ended March 5, Goodfood reported revenue of $73.4 million, down 27% from a year earlier. Management said it had to juggle inflationary pressures and saw, among other things, a “decline in customer demand following the continued removal of lockdown restrictions.”
“During the quarter, we also continued the sequential decrease in our fixed cost structure, having now completed our $12 million payroll reduction announced earlier this year,” the CEO said in a statement. , Jonathan Ferrari, who predicted further cuts in the third quarter.
“We are more focused on improving our profitability and began implementing additional salary reductions of $10-12 million during the third quarter as well as other measures to streamline operations,” he added. .
Since the start of its 2022 financial year, Goodfood has recorded a net loss of $42.25 million, compared to $7.3 million for the first six months of 2021. The group’s sales have also declined, from $192 million to $151.2 million within a year.