Big Rock Brewery has revealed plans to lay off workers as part of cost-cutting measures.

The move was claimed to be in response to the over-regulated market for brewers in Alberta, Canada. The province’s previous government increased the net provincial tax by 104% last year, which affected the profitability of small brewers in the region.

Big Rock Brewery’s senior management noted that the cost-cutting measures are the result of an extensive evaluation of its business following the tax increase, as conducted by Arsenault and Big Rock Brewery CFO Don Sewell.

“We are creating a sustainable business model by accessing new ways to grow revenues.”

The company’s president and CEO Wayne Arsenault said: “Our ultimate goal is to allocate our resources in a manner that will ensure the success of the future business and maximises shareholder value.

“We are creating a sustainable business model by accessing new ways to grow revenues, reduce expenses and improve margins, despite the current tax regime and regulatory environment for beer in Alberta.

“This process can be painful, and we recognise that personnel reductions are difficult for our employees, their families and the community.

“We value the dedicated team at Big Rock for working hard towards this goal. We will continue to work with the new Government of Alberta to establish a positive regulatory environment for small brewers in the province that is predictable, stable and supports growth.”

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Big Rock will be implementing the measures, which include restructuring costs to reduce operating expenses, as well as focusing spending on growth and profitability.

The company anticipates benefiting from these measures by realising lower operating costs beginning in the third quarter of the fiscal year 2019.