Berlin greenhouse start-up lays off half of the workforce
The Berlin greenhouse start-up Infarm has so far been considered a prime example of the successful development of a start-up. However, the current economic crisis and the increased energy prices are giving the company a hard time. In order to become profitable again in 2023, 500 employees now have to go.
Infarm has so far been regarded as a role model in the field of urban agriculture. Because the Berlin start-up produces sustainable food and does without chemical pesticides and long transport routes. With its so-called Growing Centers, the company now wants to revolutionize food production.
The Infarm concept is based on larger farms near urban centers and smaller greenhouses in supermarkets or restaurants, which enable the production and sale of organic herbs and vegetables directly on site.
Infarm: From unicorn to mass layoffs
So far, Infarm has mainly been going in one direction: upwards. Last year, the company even broke a magic barrier, earning a $1 billion valuation and unicorn status. But the current economic crisis does not seem to stop at the once successful greenhouse start-up.
Because like that Handelsblatt reported, Infarm now has to tighten its belt significantly in order to be profitable again in the coming year 2023. Accordingly, the company is apparently forced to lay off half of its workforce.
500 employees have to leave the Berlin greenhouse startup
At a works meeting on Monday, November 28, 2022, Infarm boss Erez Galonsk announced that around 500 employees would have to leave the company. In a recorded audio recording available to Handelsblatt, he said, “This is the most difficult decision I’ve ever had to make as the head of the company.”
Meanwhile, Galonska justified the step with the complicated situation on the capital markets. According to reports, the increased energy prices are also causing problems for the company. Around 950 people are currently working for Infarm.
For some employees, their job is tied to their visa. According to Erze Galonska, however, everything now revolves around operating profitably again. In addition, Infarm wants to reduce its business in Great Britain, France and the Netherlands. The company even wants to withdraw completely from Seattle and Baltimore.
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