Beyond Meat, a leading plant-based food maker, is facing challenges as it plans to reduce its North American workforce by approximately 6%. The company is struggling with a prolonged slump in demand for its plant-based burgers, chicken, and sausages, leading to this decision to cut jobs. This reduction will affect about 44 employees and represents 6% of its total global headcount.
The California-based company expects to incur a one-time charge of between $800,000 and $1.3 million due to the decline in staffing. In addition to the job cuts, Beyond Meat has named an interim chief transformation officer to lead corporate turnaround and restructuring efforts.
The plant-based meat industry has been under pressure due to a pullback in consumer interest, driven by economic uncertainty and concerns over the processed nature of these products. This shift in consumer behavior has pushed shoppers towards cheaper animal-based options, impacting companies like Beyond Meat.
In its second-quarter results, Beyond Meat reported a significant decline in revenue, with a 19.6% year-over-year drop to $75 million. The company’s net loss improved slightly to $33.2 million, but CEO Ethan Brown expressed disappointment with the results. The decline in revenue was primarily attributed to softness in U.S. retail and certain international foodservice markets.
To address these challenges, Beyond Meat is accelerating its transformation activities by reducing operating expenses, increasing distribution of core product lines, and investing in margin expansion initiatives. John Boken, a partner at AlixPartners, will lead the transformation efforts to realign costs with product demand.
This is not the first time Beyond Meat has had to make job cuts, as it seeks to align its workforce with market demand. Other plant-based food companies, including Impossible Foods, have also implemented layoffs in response to changing market dynamics.
Overall, the workforce reductions at Beyond Meat reflect the broader decline in interest for plant-based meat products. While sales have increased significantly over the past decade, recent years have seen a sharp decline in plant-based meat sales. According to The Good Food Institute, sales for plant-based meat and seafood were down 7% to $1.2 billion in 2024, with unit sales dropping by 11%.
As Beyond Meat navigates these challenges, the company is focused on adapting to changing consumer preferences, reducing costs, and driving innovation in the plant-based food sector.
