Berlin-based vertical farming company Infarm is planning to focus on its profitable 'Growing Centres' and reduce its workforce by more than 50%, due to rising energy prices and tough financial markets.
The company's proposed strategy is likely to affect around 500 employees.
Employees placed on notice will be compensated for the period and receive a severance payment, Infarm said.
Infarm will focus on Growing Centres, which it said have 'a clear path to profitability', in 2023 and consolidate the remaining where it cannot be achieved in the near term.
It plans to downsize operations in the UK, France and the Netherlands and optimise its in-store farming network to key clusters. Its operations in Japan are under review.
The company hopes to achieve profitability in Frankfurt (Germany), Copenhagen (Denmark), and Toronto (Canada), where it says it has secured contracts of 'significant' volume.
It will also open its Growing Centre in Baltimore (Maryland, US) to serve the tri-state area.
It will prioritise high-yield industrial scale farming units (ACREs) to reduce production costs and resources for affordable and more sustainable produce for consumers.
The company has forecast slower growth and added that a consolidation and focused growth mindset is required to overcome the challenges.
Recently, the company announced that it grew wheat on an indoor farm, using no soil or chemical pesticides, and much less water when compared to open-field farming.