Rogers Sugar is laying off 59 employees at the Lantic sugar factory in Montreal.
The company has decided to lay off 15 percent of its labour force -- 359 people currently work at the plant.
In a statement Ed Makin, the president and CEO of the company, said Canada's sugar industry works in an open market, unlike many other companies where supply and demand are highly regulated.
He said that means Canada's major sugar suppliers, Redpath and Lantic, have to fight foreign suppliers who have government backing.
Makin said the only way Lantic can remain competitive is to improve efficiency.
With a file from The Canadian Press