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This company says its technology can help save the world. It’s now cutting 20% of its staff as Trump slashes climate funding
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Two huge plants in Iceland operate like giant vacuum cleaners, sucking in air and stripping out planet-heating carbon pollution. This much-hyped climate technology is called direct air capture, and the company behind these plants, Switzerland-based Climeworks, is perhaps its most high-profile proponent.
 
But a year after opening a huge new facility, Climeworks is straining against strong headwinds. The company announced this month it would lay off around 20% of its workforce, blaming economic uncertainties and shifting climate policy priorities.
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“We’ve always known this journey would be demanding. Today, we find ourselves navigating a challenging time,” Climeworks’ CEOs Christoph Gebald and Jan Wurzbacher said in a statement.
 
This is particularly true of its US ambitions. A new direct air capture plant planned for Louisiana, which received $50 million in funding from the Biden administration, hangs in the balance as President Donald Trump slashes climate funding.
 
Climeworks also faces mounting criticism for operating at only a fraction of its maximum capacity, and for failing to remove more climate pollution than it emits.
 
The company says these are teething pains inherent in setting up a new industry from scratch and that it has entered a new phase of global scale up. “The overall trajectory will be positive as we continue to define the technology,” said a Climeworks spokesperson.
 
For critics, however, these headwinds are evidence direct air capture is an expensive, shiny distraction from effective climate action.