Vertical farming startup OnePointOne Inc. is closing its California facility as it shifts production — and its headquarters — to Arizona.
The company was operating a 6,000-square-foot production and research and development facility in San Jose with about 80 employees.
A letter recently sent to the state said it would be shutting down the facility, which is located at 1185 Campbell Ave., and laying off 14 workers, the Silicon Valley Business Journal reported on Wednesday.
"All affected employees have been notified of their separation dates and that their separation from employment will be permanent, as they have not elected to relocate," the company said in the letter to the state's Employment Development Department.
The closure and job cuts will take effect by Oct. 30, according to the company's letter. The laid-off workers include two plant science technicians, a grower, six engineers and an engineer technician. OnePointOne representatives did not respond to a request for comment.
Last year, OnePointOne entered the Arizona market by leasing a new 80,000-square-foot warehouse space in Avondale for a technology-driven vertical farm. This technology has grown in popularity globally and is seen as an alternative and sustainable way to farm while using less space and water.
After starting the company in 2017, co-founders and brother Sam and John Bertram decided to open their largest facility outside of California in Arizona. The company unveiled its Arizona facility at 855 N. 107th Ave. with a grand opening in June.
The company chose the Grand Canyon State due to labor, construction and electrical costs, as well as its swifter permit process, Sam Bertram told the Phoenix Business Journal after it had leased the Avondale space. Bertram also moved his family to Scottsdale last year.
"Once we sort of discovered Avondale, we couldn't believe how closely they worked with us, how quickly they processed permitting," Bertram previously said. "Back in California, things were a lot more difficult oftentimes, and coming here was just a bloody breath of fresh air."
The Avondale facility will also serve as a production hub for the company’s affiliate operation, a personalized vertical farming service called Willo. This direct-to-consumer brand allows individual members to order items such as salads from the indoor farm through a mobile application.
In the first phase, the 28-foot tall, two-story building could develop hundreds of thousands of plants per month out of thousands of vertical boards in six cultivation chambers, while production is expected to increase by six times over 18 months.
OnePointOne now lists Avondale as its headquarters on its website.
Silicon Valley Business Journal reporter Sonya Herrera contributed to this report.
