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- CEA Industries (NASDAQ:CEAD) on Monday announced cost saving initiatives, including operating expense cuts and a workforce reduction, amid continued macroeconomic and supply chain challenges.
- Shares of the company slid 7.9% in aftermarket trade.
- CEA (CEAD) noted that it has experienced declining activity in recent quarters due to weakness in the macro environment of the cannabis market, which is facing growing competition and declining wholesale prices.
- The firm is also facing continued supply chain, labor and inflationary issues that are impacting customers' contract decisions and implementation.
- "We believe these cost savings will improve both our working capital and liquidity without compromising the service our customers expect," said CEO Tony McDonald. "We will continue to evaluate our operations and will take additional actions as market conditions warrant."
- The company did not disclose how many employees would be impacted by the move.
- Earlier, CEA's (CEAD) unit bagged a third contract with a Northeast cultivation facility.