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November 28, 2022
June 10, 2024

Infarm Layoffs: What Happened & Why?

In November 2022, Infarm, a company in the agriculture industry, announced a significant strategy shift due to challenging market conditions, such as escalating energy prices and tough financial markets. This shift led to the layoffs of over half of their workforce, around 500 employees. In this article, we'll discuss what happened, why it happened, and the potential future impact of these changes on the company and the industry.

Why did Infarm have layoffs?

Infarm's decision to lay off over half of its workforce was driven by a combination of economic pressures and the need for internal restructuring. The company faced escalating energy prices, tough financial markets, inflation, supply chain disruptions, and rising material costs. To adapt to these challenges and accelerate their drive towards profitability, Infarm's founders announced a significant strategy shift, focusing on growing centers with a clear path to profitability in 2023 and consolidating those where this cannot be achieved in the near term.

As part of this strategy shift, Infarm is consolidating farming capacity in core markets, downsizing operations in certain countries, optimizing the InStore farming network, and prioritizing high-yield industrial scale farming units. The company remains committed to its sustainability, climate, and food security goals. Employees affected by the layoffs were compensated for their notice period and received a severance payment, with support from their managers and HR representatives throughout the transition.

Financial Impact and Future Directions

Infarm's recent strategic adjustments, including workforce reductions and operational optimizations, reflect a broader plan to enhance efficiency and sustainability in its urban farming ventures.

These changes are part of Infarm's commitment to a more sustainable and environmentally friendly food system, leveraging advanced technology to minimize the ecological footprint of food production​.

Impact on Industry

Infarm's strategy shift and drive towards profitability, resulting in over half of their employees leaving the company, will likely have implications for the vertical farming sector. The reduction of production sites and departure of a significant portion of Infarm's workforce may lead to changes in the competitive landscape and potentially affect the availability of vertical farming products and services in certain markets.


Infarm's layoffs were driven by economic pressures and a need for internal restructuring, with the company focusing on profitable Growing Centres and consolidating others. This strategic shift could impact the vertical farming sector, altering the competitive landscape and product availability. Infarm's future success and industry standing will depend on their ability to adapt to market challenges and achieve long-term sustainability goals. These developments may signal similar moves by other companies in the sector.