Farmers Edge has announced layoffs of 20 per cent of its workforce as the company continues to struggle financially.
In an Aug. 10 news release, the Manitoba-based digital agriculture firm said it had “delivered on its previously commenced plan in the fall of 2022 to achieve $20 million in annualized cost savings.”
This involved “realignment” of its North American workforce, consolidation of operations, and moving to a “self-delivery model.”
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In its second-quarter business update, the company refers to a “virtual delivery model” that will apply in specific regions of North America. That new model “aims to enhance customer experience, reduce customer acquisition costs, and drive significant free cash flow savings,” the report said.
Farmers Edge has seen its revenue slide compared to two years ago, along with a decline in enrolment for its digital agronomy program. Over the second quarter of 2023, Farmers Edge added about 100,000 acres, but lost nine times that amount, “most of which are low valued,” the Aug. 10 release said.
This “includes the impact of conversion rate adjustments, cancellation of the Progressive Growing Program, and a lack of market for agriculture carbon offsets,” the business update said.
Total enrolled acres are now about 6.6 million, down from 9.8 million at the end of 2022.
“Our restructured sales team and new market strategy should help us add significant new acres over the remainder of the year as a solid foundation for growth has been laid,” the company said Aug. 10.
In the second quarter of 2023, Farmers Edge posted a net loss of about $18.5 million, bringing its total net loss for the year to about $37.2 million. This is an improvement from 2022. At the end of June 2022, the company was down about $45.7 million, the news release shows.
Revenue loss was, in part, attributed to “weakness in new acres in North America, discontinued low value acres in Brazil, and the closure of Australian operations,” it said in its business update.
