French biotech company Carbios has announced a significant workforce reorganization as part of cost control measures revealed in late December 2024. The restructuring will result in the elimination of approximately 40% of its jobs. As of 2023, Carbios employed 134 workers, and in the first half of 2024, it reported a loss of €18.1 million. The job cuts will impact employees at both Carbios and its subsidiary, Carbios 54, which is responsible for overseeing the company’s planned PET depolymerization plant in Longlaville, France.

The decision to downsize follows Carbios’ recent postponement of the plant’s construction by six to nine months due to delays in securing necessary funding. Despite this setback, the company remains committed to completing the facility. “This reorganization should help Carbios continue executing its technological, industrial, and commercial strategy while carefully managing its solid cash position (€107 million as of December 31, 2024) by reducing cash burn,” the company stated. Carbios also reaffirmed its objective of signing its first commercial contracts in the first half of 2025 and securing the required financing to resume construction of its PET biorecycling plant.

Carbios broke ground on the Longlaville plant in April 2024, touting it as the world’s first PET biorecycling facility. The company secured €30 million in non-dilutive funding under the France 2030 program, designed to stimulate employment, enhance productivity, and bolster the competitiveness of French enterprises. However, the disbursement of these funds remains subject to European Commission approval. Additionally, Carbios is awaiting €12.5 million in funding from the Grand Est Region, where the plant is based.

Further complicating the project’s timeline, Carbios’ negotiations with Indorama Ventures have yet to be finalized. In June 2023, the two companies signed a non-binding Memorandum of Understanding (MOU) to establish a joint venture for the plant’s construction. Under the proposed agreement, Indorama Ventures would contribute approximately €110 million in equity and non-convertible loan financing, pending the completion of final engineering documents and economic feasibility studies. However, rising inflation has led to a revised total capital investment estimate of €230 million for the project.

Carbios remains optimistic about its long-term prospects, emphasizing that its restructuring is a strategic move to maintain financial stability while continuing to advance its innovative recycling technology. The company’s biorecycling process aims to revolutionize PET recycling by enabling the efficient breakdown and reuse of plastic waste, positioning Carbios as a leader in sustainable solutions within the industry.

CARBIOS is a biotech company focused on developing and industrializing biological solutions to transform the life cycle of plastics and textiles. Drawing inspiration from nature, CARBIOS engineers enzyme-based processes to break down plastics, aiming to prevent pollution and drive the transition toward a circular economy.