Canadian licensed producer Canopy Growth Corp. announced Dec. 9 that it will close additional cultivation sites in Canada, according to a Reuters report.

The company will shutter roughly 17% of its indoor cultivation space and all of its outdoor cultivation sites, the news outlet reported, which will result in layoffs for about 220 employees.

Affected cultivation operations include indoor facilities in Edmonton, Alberta and Bowmanville, Ontario, according to Reuters, as well as outdoor sites in Saskatchewan.

“We are confident that our remaining sites will be able to produce the quantity and quality of cannabis required to meet current and future demand,” Canopy CEO David Klein said in a statement to the news outlet.

The closures are part of a four-pronged approach that Klein and other company executives outlined last month to improve margins and turn a profit by the end of the fiscal year 2022, Reuters reported.

Canopy unveiled a “production optimization plan” in March for its Canadian operations, which included the closure of two greenhouse facilities in Aldergrove and Delta, British Columbia, and the elimination of roughly 500 employees.

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The company laid off an additional 200 employees in May in the next phase of scaling back its operations.

Canopy has cited the slow rollout of Canada’s adult-use cannabis market and the timing of outdoor cultivation licensing as the primary reasons behind its restructuring.