Tilray Inc. (NASDAQ: TLRY) stock retreated and is trading near the record low of $15.01 on Friday as investors remained concerned about the company’s future. This comes on heels of the company laying off more than 140 people, or 10% of its workforce, as part of its global restructuring plan.

The stock has fallen over 26% in the past three months and over 60% in the past six months while rising over 9% in the past month. For the year, the shares have tumbled over 78%. The stock, which is trading just below $17, is lower than the 50-day and 200-day moving average of $17.99 and $25.03, respectively.

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In the short-term, Tilray’s path to profitability includes lowering costs, expanding leadership in higher-margin international medical markets, launching higher-margin products, leveraging Manitoba Harvest infrastructure to launch US CBD and create brand awareness.

In the long term, the growth path includes continued R&D to drive product development and improvement in product mix, and increased branded product distribution in medical and adult-use markets.

The industry has remained under tremendous pressure during this year due to the continued lack of clarity for achieving growth. The cannabis industry has till now produced 15% more jobs in 2019, according to a Leafly report. The report showed that a record-high 243,700 Americans are employed in the legal cannabis industry as of early 2020, with 33,700 jobs added in the last year.

The layoff from Tilray, along with Aurora Cannabis (NYSE: ACB) cutting about 340 jobs, has shaken the industry with job seekers fearing to venture into the cannabis space. The companies are aiming for continued growth, and restructuring remained the easy and best option for that.

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Tilray has been struggling to achieve profitability due to an increase in costs associated with the production and supply of cannabis. Tilray remained cautious in job cuts as the business could turn around faster. The company has been prudent for not placing itself at a competitive disadvantage in improving the business environment due to the shortage of labor when the business turns around at a faster pace.

Market experts believe that the job cuts are inevitable due to the pressure to cut back on expenses. In the past, cannabis companies were running behind fast growth and market share instead of focusing on revenue generation and profitability. They expect the industry is undergoing a restructuring phase, which could lower the expenses and drive growth.

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