Beyond Meat has layed off a fifth of its non-production workforce as it downgrades net revenue forecasts for the second time this year.
The total number of employees being cut is 65, which represents 19% its non-production workers and 8% of its global staff, The Times reported.
The plant-based meat firm’s sales outlook has been downgraded to between $330m (£270.7m) and $340m (£278.9m), compared with a previous forecast of $360m (£295.3m) and $380m (£311.7m).
Net revenues are expected to be $75m (£61.5m) for the third quarter to 30 September 2023, however this is below analyst predictions of $88m (£72m).
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Beyond Meat president and CEO, Ethan Brown, said: “We anticipated a modest return to growth in the third quarter of 2023 that did not occur, reflecting further sector-specific and consumer headwinds.
“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.”
The company said net revenues in the quarter were partly impacted by “weaker than expected sales volumes” in the US and less demand for the plant-based category, as well as “unfavourable changes” in product sales mix.
Brown said that Beyond Meat itends to imrpove its cost structure and operating performance by “executing an approximate 19% reduction in our global non-production workforce.”
The firm is also reviewing its pricing strategy, utilising inventory management, “intensifying” its focus on channels and geographies that are exhibiting revenue growth, and using its portfolio and marketing to “directly counter misinformation about our products and category.”
