(Reuters) – Pot producer Canopy Growth Corp posted a bigger third-quarter core loss on Thursday, and said it would reduce its workforce by about 60% and exit the cannabis flower cultivation in Canada as part of its cost-reduction program.
To turn profitable, the company has been cutting costs through layoffs, exits from some international markets, store closures and divestiture of its retail business across Canada.
Canada’s oversupply of licenses has created fierce competition and has led to excess supply in the cannabis market. Meanwhile, rising inflation in recent quarters forced customers to cut spending, especially on recreational products including cannabis, and also hit companies with higher production costs.
Canopy said it would exit cannabis flower cultivation in Canada and intends to close its facility in Ontario.
The company expects to save an additional C$140-C$160 million over the next 12 months from its latest cost-cutting measures.
The Ontario-based company’s adjusted core loss widened to C$87.5 million ($65.29 million) in the quarter ended Dec. 31, from C$67.4 million a year earlier.
($1 = 1.3401 Canadian dollars)
(Reporting by Ankit Kumar; Editing by Maju Samuel)
