EL SEGUNDO, CALIF. — Beyond Meat, Inc. is laying off approximately 19% of its workforce and has further reduced its fiscal 2022 sales outlook to a range of $400 million to $425 million. The company is scheduled to release its third-quarter financial results on Nov. 9.
The layoffs will affect approximately 200 and mostly be complete by the end of the year, according to the company. Beyond Meat expects to incur a $4 million charge in connection with the layoffs and save approximately $27 million in cash operating expenses.
The company also reduced its fiscal 2022 sales outlook for the second time this year. The new range of $400 million to $425 million is down from $470 million to $520 million, announced in August. Beyond Meat originally forecast its annual sales would be between $560 million and $620 million. The company said delayed or canceled product promotions, programs and introductions relative to management’s plans negatively affected its sales outlook.
Overall, the company cited ongoing softness in the market for plant-based meat alternatives, especially the refrigerated subsegment, inflation and competition as reasons for the changes.
“Beyond Meat is implementing measures to drive more sustainable growth, emphasizing the achievement of cash flow positive operations within the second half of 2023,” said Ethan Brown, president and chief executive officer. “While we believe the current headwinds facing our business and category — including record inflation — are transient, our mission, brand, and long-term opportunity endure. To manage through the current environment and realize the opportunity ahead, we are significantly reducing expenses and sharpening our focus on a set of key growth priorities.”