Beyond Meat Plans to Lay Off 4% of Global Workforce
Beyond Meat said inflation is slowing down the company’s goal to eventually sell its vegan burgers and other products at the same price of meat.
Photo:
Creative Touch Imaging Ltd/Zuma Press
Beyond Meat Inc.
BYND 17.74%
is cutting 4% of its global workforce, saying the layoffs are part of its plan to reduce costs as inflation prompts consumers to buy less-expensive protein.
The California-based company, which has the ambition to eventually sell its vegan burgers and other products at the same price of meat, said Thursday that progress was taking longer than expected. Chief Executive
Ethan Brown
said inflation has magnified the importance of meeting that goal.
Mr. Brown said the company’s plant-based ground beef recently sold for about $8 a pound, while actual ground beef cost about $5 a pound. “That is a very difficult proposition when consumers have very high levels of inflation going on,” he said.
Beyond Meat said its layoffs will save the company $8 million. It had 1,108 full-time employees and 311 full-time contract workers as of last December.
The company said Thursday that its second-quarter loss increased to $97.1 million from compared with $19.7 million in the same period last year. That was more than analysts expected. Revenue fell 1.6% to $147 million.
Beyond Meat also trimmed its full-year sales forecast to between $470 million and $520 million, down from its previous outlook of $560 million to $620 million. Mr. Brown said the company would focus on reducing operating expenses and manufacturing costs through the rest of the year. The company expects to incur expenses of $1 million in the third quarter from the layoffs.
The company’s share price was little changed in after-hours trading.
—Jesse Newman contributed to this article.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the August 5, 2022, print edition as ‘Beyond Meat Cuts Global Workforce by 4%.’
Beyond Meat said inflation is slowing down the company’s goal to eventually sell its vegan burgers and other products at the same price of meat.
Photo:
Creative Touch Imaging Ltd/Zuma Press
Beyond Meat Inc.
BYND 17.74%
is cutting 4% of its global workforce, saying the layoffs are part of its plan to reduce costs as inflation prompts consumers to buy less-expensive protein.
The California-based company, which has the ambition to eventually sell its vegan burgers and other products at the same price of meat, said Thursday that progress was taking longer than expected. Chief Executive
Ethan Brown
said inflation has magnified the importance of meeting that goal.
Mr. Brown said the company’s plant-based ground beef recently sold for about $8 a pound, while actual ground beef cost about $5 a pound. “That is a very difficult proposition when consumers have very high levels of inflation going on,” he said.
Beyond Meat said its layoffs will save the company $8 million. It had 1,108 full-time employees and 311 full-time contract workers as of last December.
The company said Thursday that its second-quarter loss increased to $97.1 million from compared with $19.7 million in the same period last year. That was more than analysts expected. Revenue fell 1.6% to $147 million.
Beyond Meat also trimmed its full-year sales forecast to between $470 million and $520 million, down from its previous outlook of $560 million to $620 million. Mr. Brown said the company would focus on reducing operating expenses and manufacturing costs through the rest of the year. The company expects to incur expenses of $1 million in the third quarter from the layoffs.
The company’s share price was little changed in after-hours trading.
—Jesse Newman contributed to this article.
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the August 5, 2022, print edition as ‘Beyond Meat Cuts Global Workforce by 4%.’
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