Dive Brief:
- Beyond Meat plans to reduce its North American workforce by about 44 employees as the food maker struggles with a prolonged slump for its plant-based burgers, chicken and sausages. The reduction represents approximately 6% of its total global headcount.
- The California-based food company said it will incur a one-time charge of between $800,000 and $1.3 million due to the decline in staffing. Beyond Meat also named an interim chief transformation officer to help lead corporate turnaround and restructuring efforts.
- Plant-based meat consumption has faced pressure due to a pullback in consumer interest, with economic uncertainty and concerns over the processed nature of the offerings pushing shoppers toward cheaper animal options.
Dive Insight:
Beyond Meat’s second-quarter results showed a dramatic fall for the once-high-flying company struggling amid changes to the plant-based space and macroeconomic turmoil. During the quarter, which ended June 28, the company reported a 19.6% year-over-year decline in revenue to $75 million, while its net loss improved by $1.3 million to $33.2 million.
CEO Ethan Brown said in a statement he was “disappointed with our second quarter results,” which he blamed primarily on softness in U.S. retail and certain international foodservice markets. Revenue in U.S. retail plunged 26.7% to $32.9 million in the quarter, while international foodservice slumped 25.8% to $15.1 million.
“We are responding by accelerating our transformation activities, including more rapidly and aggressively reducing our operating expenses to fit anticipated near term revenues; prioritizing increased distribution of our core product lines; and investing in margin expansion initiatives across these core products,” Brown said.
Beyond Meat said John Boken, a partner and managing director at AlixPartners' Turnaround and Restructuring Services practice, will lead the transformation efforts.
With sales at the company declining, Beyond Meat is seeking to reduce costs and align them more closely with demand for its products. The latest job cuts mark at least the third time in the last three years that Beyond Meat has slashed its staff. Other plant-based food makers, including Impossible Foods, have also laid off workers.
The workforce reductions mirror the drop-off in interest for plant-based meat. Even though sales are significantly higher than a decade ago, plant-based meat sales have sharply declined in recent years. The Good Food Institute estimated sales for plant-based meat and seafood in 2024 were down 7% to $1.2 billion, with unit sales dropping 11%.
