(Reuters) – Canopy growth Corp stated that 250 people would be laid off as part, a cost-cutting initiative by the Canadian pot producer.

Canadian marijuana businesses have had a difficult time turning a profit in spite of more than 3 years of legalization. The reason is that there are fewer retail shops, lower prices on the black market, and slow international growth.

This has put pressure on businesses to cut expenses. Canopy stated Tuesday that they would reduce their costs by decreasing the amount it spends cultivating weed.

These moves will result in cost savings of C$100million to C$150million ($77.98 million to $116.99 millions) within 12-18 months.

The company lost C$67.4 millions in its third quarter and did not give a timeline to turn profitable.

Canopy stated that it expects to incur charges between C$250m and C$300m in the fourth quarter. Most of these would be related to write-downs of excess inventory.

The company expects to pay between C$100m and C$250m in impairment fees, which are largely due to goodwill and other intangible assets impairments.

As of March 20,21, the company employed 3,259 people, which included 2,362 Canadian full-time workers.

($1 = 1.2822 Canadian dollars)