Vertical farming startup OnePointOne Inc. is closing its San Jose facility as it shifts production — and its business — to Arizona.
Formerly based in San Jose, the company is shuttering its research and production center in the city, Shawn Essien, its human resources vice president, said in a letter sent to the state employment officials July 14. As part of the move, OnePointOne is laying off 14 workers at the facility, which is located at 1185 Campbell Ave., Essien said.
"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," she said in the letter to the state's Employment Development Department.
The closure and job cuts will take effect by Oct. 30, according to Essien'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.
The company, which grows plants on racks in warehouses, began building a new 80,000-square-foot facility in Avondale, Ariz., last year. It chose the Grand Canyon State due to labor, construction and electrical costs, as well as its swifter permit process, OnePointOne co-founder Sam Bertram told the Phoenix Business Journal in December.
"Once we sort of discovered Avondale, we couldn't believe how closely they worked with us, how quickly they processed permitting," Bertram said. "Back in California, things were a lot more difficult oftentimes, and coming here was just a bloody breath of fresh air."
OnePointOne now lists Avondale as its headquarters on its website.
