Carbon capture pioneer Climeworks lays off one fifth of staff

"After a phase of strong growth, Climeworks is proactively adapting its organization to maintain agility and efficiency. We will reduce up to 106 positions globally, of which 78 in Switzerland," the company announced.

Climeworks, which has 498 staff around the world, said last week that it was negotiating cuts "in light of current macroeconomic uncertainty, shifting policy priorities where climate tech is seeing reduced momentum in some areas" and lack of clarity for a new plant in the United States.

Launched in 2009, Climeworks has seen stunning growth since the opening in 2021 of its first plant in Iceland that uses giant fans to suck carbon dioxide out of the air which is then buried in the ground.

It has secured contracts with major companies such as Microsoft, Lego, H&M and Lufthansa, allowing the firms to gain carbon credits to offset CO2 generated by their businesses.

But some experts have expressed doubts about the cost and efficiency of the technology.

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MICROSOFT

H&M

SWISS RE AG

Lufthansa