Listen to this story:

The quick read: SNDL Inc. cut more than 30 per cent of the workforce at its Kelowna manufacturing facility during the third quarter, the company disclosed with its third-quarter results on October 27. The cuts come as the cannabis operations segment lost ground, with revenue down 27.7 per cent to C$27 million and an operating loss of C$64.7 million including impairment and restructuring charges.

More than three in ten jobs are gone at a Kelowna manufacturing plant.

SNDL Inc., the Canadian cannabis producer and retailer, reduced its Kelowna manufacturing workforce by more than 30 per cent during the third quarter, according to reporting on the company's third-quarter results released October 27.

The company has not disclosed the facility's total headcount alongside the percentage.

That means the exact number of affected Kelowna workers cannot be calculated from what has been published so far, and any outlet giving you a precise figure is guessing.

The numbers behind the cuts

SNDL's Cannabis Operations segment generated C$27 million in third-quarter revenue, down 27.7 per cent from C$37.4 million a year earlier.

The segment recorded a negative gross margin of 6 per cent, compared with a positive 13.4 per cent in the prior-year period.

Its adjusted operating loss widened to C$11.4 million from C$10.2 million.

Including impairment and restructuring charges, the segment's operating loss reached C$64.7 million.

Management attributed much of the revenue decline to its exit from unprofitable domestic dried flower products and a shift toward higher-value categories.

The transition also exposed inventory and manufacturing problems, with about C$6 million in additional negative impacts tied mainly to inventory adjustments and cost variances associated with its Jeeter products.

The company said the Kelowna reductions were part of a broader effort to lower manufacturing and operating costs, and that management expects them to begin contributing to financial results in the fourth quarter.

A company-wide review, with sales on the table

The job cuts are not the end of the story.

SNDL has launched a strategic review of its cannabis operations, and is evaluating a range of alternatives from divestitures to larger productivity initiatives, according to its earnings announcement.

In plain terms, that means asset sales are possible.

Chief executive Zach George said the third-quarter results showed improvement in underlying performance, including positive adjusted operating income and record quarterly free cash flow generation across the company.

But he also acknowledged that cannabis operations remained below expectations and recorded a non-cash impairment.

What this means for Kelowna

Behind every percentage point in a corporate earnings release are real paycheques, real families, and real rent payments.

Kelowna's legal cannabis sector was sold to voters as a job creator and a tax contributor.

Instead, years of oversupply, thin margins, and a heavy regulatory and tax burden have squeezed legal producers while the illicit market keeps undercutting them on price.

That is a policy failure, not just a business one.

When governments pile compliance costs onto legal businesses and then act surprised when jobs disappear, workers pay the price.

What to watch

Watch the fourth-quarter results for whether the Kelowna cuts actually improve the numbers, as management expects.

Watch the strategic review for whether the Kelowna facility itself, or other cannabis assets, end up sold.

And watch for any word from SNDL on the actual number of Kelowna workers affected, because the community deserves a real figure, not a percentage.

We will update this story when the company says more.

Sources: SNDL Inc. third-quarter 2026 results, as reported October 27, 2026, including IgniteIt coverage of the earnings announcement and Business News Today reporting on the Kelowna workforce reduction. Exact Kelowna headcount, severance costs, and facility-specific savings were not disclosed in the reporting available.

Photo credit: Photo by Sam Moghadam on Unsplash