The plant-based meat sector has continued to decline in sales over the past few years as consumers are feeling inflationary pressures, forcing companies like Beyond to rethink their business models.
Last week, Beyond Meat announced that "the Company is further reducing its current workforce by approximately 65 employees, representing approximately 19% of the Company’s global non-production workforce (or approximately 8% of the Company’s total global workforce)."
Now, Beyond Meat expects sales to be down by 9% to $75 million versus a previous consensus of $87 million for its third-quarter results. With the layoffs, Beyond Meat projected about $9.5 million to $10.5 million in cash operating savings for 2024.
“Even as we implement measures to address those headwinds that are within our sphere of influence, we intend to pursue a further, sizable reduction of operating expenses to improve our cost structure,” said Brown in a statement. The measures include a reduction in headcount, a review of pricing strategy, a reduction in working capital, and a focus on channels and geographies that are exhibiting revenue growth like China and specifically in the U.S., countering misinformation about its products.
Recent reports have shown signs of consumers wanting whole ingredients in food, instead of some of the additives used in products from Beyond Meat and Impossible Foods to better mimic animal protein.
The company will report full financial results for the third quarter ended Sept. 30 on Nov. 8.
About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND) is a leading plant-based meat company offering a portfolio of revolutionary plant-based meats made from simple ingredients without GMOs, no added hormones or antibiotics, and 0 mg of cholesterol per serving. Founded in 2009, Beyond Meat products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. Beyond Meat’s brand promise, Eat What You Love®, represents a strong belief that there is a better way to feed our future and that the positive choices we all make, no matter how small, can have a great impact on our personal health and the health of our planet. By shifting from animal-based meat to plant-based protein, we can positively impact four growing global issues: human health, climate change, constraints on natural resources and animal welfare. As of June 2023, Beyond Meat branded products were available at approximately 190,000 retail and foodservice outlets in more than 75 countries worldwide. Visit www.BeyondMeat.com
