Infarm lays off 500 employees

Rising energy and material costs, supply chain problems and the difficult situation on the financial markets: Infarm wants to become profitable as quickly as possible in order to defy the difficult economic situation.

The Berlin unicorn Infarm is laying off 500 employees. That is more than half of the existing workforce. The founders Erez Galonska, Osnat Michaeli and Guy Galonska explained the move in an email to the workforce. The dismissed employees will receive compensation during the notice period and a severance payment.

According to the start-up, production costs had recently risen due to increased energy costs in Europe. Rising material costs due to inflation and supply chain problems as well as the difficult situation on the financial markets also caused problems for Einhorn. In order to maintain its position on the global market, Infarm now wants to focus on becoming profitable within the next 18 months. To this end, Infarm is closing a number of sites.

In the future, the company wants to focus primarily on its core markets and the cultivation facilities in Frankfurt, Copenhagen and Toronto. They also want to open a cultivation facility in Baltimore in the US. In contrast, business activities in the Netherlands, the UK and France are to be scaled back.