Cincinnati startup darling 80 Acres Farms has laid off roughly two dozen employees as it streamlines operations amid a broader tech downturn – the second local venture-backed company hit by job cuts so far in 2023.
80 Acres, a Hamilton-based vertical farming startup known for its tomatoes and leafy greens, said the eliminated positions account for less than 10% of its workforce. It’s unclear exactly what those jobs entailed and where they were based. 80 Acres operates eight indoor farms nationally.
As of June, the company employed roughly 300 people.
The cuts come as recession fears mount and venture capital deal flow slows. Already in 2023, more than 26,000 tech jobs have been eliminated, according to tracker site Layoffs.fyi.
The vertical farming industry in particular is also facing soaring energy costs. Infarm, Europe’s largest vertical farming company, laid off 50 last year, while Fifth Season, a Pittsburgh-based indoor vertical farming startup, shut its doors altogether in October.
For 80 Acres, the “select job eliminations” will allow for “focused, sustainable growth,” a spokesperson told Cincy Inno.
The company in 2022 announced two expansion projects: new farms in Florence and Covington, Ga., outside Atlanta. The latter, originally scheduled to start distribution in early 2023, stands as its largest and most expensive to date, at $120 million and more than 200,000 square feet. The company still has around 18 open positions posted on its career page.
“We continue to grow and remain committed to supporting our customers,” the 80 Acres statement said. “Like any company, we are constantly assessing ways to simplify and streamline. To manage our business responsibly, we need to make strategic tradeoffs.”
80 Acres Farms, founded in 2015, ranks as one of the region’s best-funded startups. While CEO Mike Zelkind has been tight-lipped about the company’s valuation, it's raised more than $250 million to date, including a $160 million Series B announced in August 2021, which, at the time, stood as the region's largest single raise.
The company grows tomatoes, cucumbers, leafy greens and herbs like basil, microgreens and more. Its newest release, strawberries, rolled out to specific Greater Cincinnati grocers starting in the fall.
80 Acres farms use 95% less water than traditional farms and are powered by renewable energy. The company relies heavily on its technologies, robotics and advanced data analytics. The farms also are built close to consumers, reducing the resulting negative carbon emissions that exist within the food supply chain.
Earlier this month, high-flying Astronomer, another Cincinnati unicorn, cut 76 positions, or 20% of its staff. CEO Scott Yara said the startup, which helps companies manage large sums of data, overhired. The reductions in staff mean Astronomer is “better equipped to emerge from the downturn in the economy," Yara said.
