ETH spinoff Climeworks cuts jobs: Why the Swiss CO2 startup is in trouble
The Swiss startup Climeworks, which extracts CO2 from the air, is facing major job cuts, according to a report. More than 10 percent of the workforce could be affected.
The Swiss startup Climeworks, which extracts CO2 from the air, is facing major job cuts, as reported by "SRF." Climeworks has so far received $810 million (approximately €725.5 million) in investments and, following strong growth, recently employed 498 people.
The company is now in a consultation process that comes into effect when more than ten percent of the workforce is to be laid off simultaneously. It will be completed by the middle of next week. Then it will become clear how many people will be affected. According to the company , it will be significantly more than ten percent.
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Managing Director and co-founder Jan Wurzbacher told SRF that financial reasons were behind the decision. Without the dismissal , the company would not be able to fulfill its project and financial plans.
According to "SRF," Climeworks is struggling with several problems. Expansion into the US has been paused, even though 469 jobs were already planned in Louisiana and $500 million (approximately €448 million) had been pledged by the US Department of Energy. Construction was scheduled to begin in 2026. Wurzbacher reports a lack of contacts in US authorities, but emphasizes that the project will not be stopped.
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Furthermore, the plants in Iceland – "Orca" and "Mammoth" – are falling short of expectations. Instead of the planned 36,000 tons of CO2 per year, "Mammoth" only managed 105 tons in its first year. The startup admits to the initial difficulties, citing technical challenges and the fact that only a portion of the machines have been installed in "Mammoth."
Rolf Wüstenhagen, Professor of Renewable Energy Management at the University of St. Gallen, told SRF that such setbacks are not unusual for pioneering projects of this kind.
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