The world's largest cannabis company by market cap shrunk in terms of both greenhouse space and employees on Wednesday. 

Canopy Growth has announced plans two cultivation facilities in Aldergrove and Delta, which will result in the layoffs for 500 employees. 

"Nearly 17 months after the creation of the legal adult-use market, the Canadian recreational market has developed slower than anticipated, creating working capital and profitability challenges across the industry," the company said in the statement. 

"Additionally, federal regulations permitting outdoor cultivation were introduced after the Company made significant investments in greenhouse production."

The two shuttered greenhouses account for about three million square feet and the company no longer plans to operate a third greenhouse in Niagara-on-the-Lake, Ont.

In February, it recorded a $124.17-million loss in its third quarter of 2020.

Canada’s second-largest cannabis company Aurora has also pursued similar cuts, laying off 500 employees and announcing the departure of CEO Terry Booth.