Cannabis Growers’ Cost-Cutting Steps Pay Off
February 11, 2021 
Canopy Growth Corp., one of North America’s largest cannabis producers, says it expects to turn a profit in the second half of 2022 after aggressive cost-cutting and higher demand for cannabis helped narrow third-quarter losses.
Canadian producers have been under pressure from investors as profits remain elusive due to oversupply crimping sales in Canada and overseas expansion bets turning sour.
In an article from Reuters, Canopy said it expects to generate cash by fiscal 2024 and become operating cash flow positive a year before that, soothing market worries on profitability and sending its shares up as much as 12%.
The company and its rivals Aphria Inc. and Aurora Cannabis Inc. have been cutting expenses by closing plants, scaling down cultivation, and laying off employees.
Canopy Growth executives says it has cut 29% of its workforce in the last one year and aims to save as much as C$200 million annually.
Chief Executive David Klein said Canopy has been beefing up infrastructure and expects to start sale of recreational cannabis in the U.S. by the end of 2021.
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