Beyond Meat has unveiled plans to cut jobs and suspend its operations in China as it embarks on a cost-cutting drive.

The plant-based meat firm confirmed it will reduce its current workforce in North America and the EU by around 44 employees, representing roughly 6% of the company’s total global workforce.

Beyond Meat said the decision was based on cost-reduction initiatives intended to reduce operating expenses, as it plans for run-rate EBITDA-positive operations by the end of 2026.

It comes as net sales decreased 4.9% year on year to $326.5m (£258.4m) over the 2024 financial year. However, the company returned to year on year net revenue growth in the second half and “sharply reduced operating expenses”.

While adjusted EBITDA was at a loss of $101.7m (£80.5m) over the period, this shrunk significantly from a loss of $269.2m (£213.1m) the year before.

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However, alongside job cuts in Europe and the US, Beyond Meat is also set to suspend operations in China, which are estimated to cease by the end of the second quarter of 2025.

As part of this plan, the vegan meat brand is reducing its workforce in the country by 20 employees, representing around 95% of roles.

Beyond Meat president and chief executive Ethan Brown said that looking ahead, the business is pursuing four main goals, including to produce year on year top line net sales, to improve gross margin to around 20% with a long-term goal of 30%, to further reduce operating expenses over the next two years, and to strengthen its balance sheet.

He explained: “We are pursuing these four measures with considerable confidence in the long-term growth of the global plant-based meat industry and our leadership position therein.”

For the 2025 financial year, net revenues are expected to be in the range of $320m (£253.4m) to $335m (£265.3m).