Beyond Meat to Cut 10% of Staff Following Sales Downturn
Posted by Emily on 7th Nov 2023
Beyond Meat, a leading plant-based food manufacturer, is set to cut its workforce by 10% after its third-quarter sales fell short of expectations.
Pascal Shirley, CC BY-SA 4.0, via Wikimedia Commons
This reduction means that approximately 65 staff members will be let go, a tenth of its global workforce and nearly a fifth of its non-production staff.
The company has experienced decreased demand for its plant-based meat alternatives, with its flagship products – Beyond Burger, Beyond Beef, and Beyond Sausage – seeing a slump in sales.
The expected net revenue is forecast to be between $330 (£268.7) million and $340 (£276.7) million, marking a 19% to 21% drop from the previous year.
Ethan Brown, President and CEO of Beyond Meat, commented: "We were hoping for a slight rebound in growth in the third quarter of 2023 that unfortunately didn't come to pass, due to ongoing industry-specific and consumer challenges. We're taking steps to manage these issues, and we're planning to significantly cut our operating costs to better our financial position."
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Beyond Meat is re-evaluating its pricing approach and is actively marketing to correct any misconceptions about its products and the sector as a whole.
Established in 2009, Beyond Meat's offerings have been featured in well-known restaurants like McDonald's and Starbucks.
It's been a tough year for plant-based meat companies. Leeds-based Meatless Farm had to let go of most of its staff and went into administration, only to be later acquired by the vegan company VFC.
Plant & Bean, situated in Lincolnshire and a supplier to firms including Tesco, also entered administration in June.
Marlow Foods from Middlesborough, creators of the meat alternative Quorn, reported a £15.5 million loss last year due to increased costs and reduced supermarket sales.