Beyond Meat is reviewing its activities strategically.
California’s El Segundo As its sales situation worsens, Beyond Meat is undertaking a strategic assessment of its global operations. Six days before its third-quarter earnings were released on November 8, the firm announced on November 2 that it was examining its operations and reducing its non-production staff by 19%. This was a revision to its full-year outlook.
The president and CEO, Ethan Brown, stated, “We anticipated a modest return to growth in the third quarter of 2023 that did not occur, reflecting further sector-specific and consumer headwinds.” “We intend to pursue a further, sizable reduction of operating expenses to improve our cost structure, even as we implement measures to address those headwinds that are within our sphere of influence.”
According to the corporation, the strategic review may involve focusing the company’s attention on certain growth possibilities and speeding initiatives that give priority to cash generation and gross margin improvement in order to reduce operational expenses. The company’s pricing strategy within specific channels may be altered, certain product lines may be phased out, cash-accretive inventory reduction plans may be accelerated, manufacturing capacity and real estate footprint may be further optimized, and the company’s operations in China may be reviewed and potentially restructured.
A total of 65 workers, or 19% of Beyond Meat’s non-production personnel and 8% of its global workforce, will be let go as part of the workforce reduction.
Beyond Meat predicted in August of last year that its net revenues for the entire year would be between $360 million and $380 million. As of right now, the company projects net sales for the year to be in the $330–$340 million range.
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The full-year outlook revision was due to three factors, according to the company:softer demand for plant-based meat substitutes in US retail and foodservice channels; less successful promotions than anticipated; and unfavorable changes in product sales mix, which mostly reflected the company’s core products’ lower-than-expected sales of Beyond Burger, Beyond Beef, and Beyond Sausage in comparison to some non-core products, such as Beyond Steak, Beyond Chicken Tenders, Beyond Popcorn Chicken, and Beyond Chicken Nuggets.