In February 2023, Seoul-based agritech startup Green Labs laid off approximately 350 employees, representing about 70% of its workforce, as part of a major restructuring. This reduced its headcount to 150 people. The layoffs were driven by a severe cash crunch after the company overextended its expansion. A key factor was the suspension of its accounts receivable factoring financing by lender Lotte Card, following a freeze in South Korea's bond market. This forced Green Labs to repay large loans abruptly. Just a month after the layoffs, in March 2023, the company secured $38.4 million in debt financing from existing investors to support its revival efforts.
