Beyond Meat to cut 19% of its workforce amid sales slump • TechCrunch
Besides meat plans to lay off about 200 employees, or 19% of the workforce, according to a submit the application as prescribed Friday reveal.
Company Sales decline is quoted and said the layoffs were “based on cost reduction initiatives aimed at reducing operating costs … and targeting active cash flow in the second half of 2023.”
Beyond Meat expects to complete the cuts by the end of the year.
The company’s shares, which opened Friday on the NASDAQ exchange, were down 87% from their 52-week high, falling even further in mid-morning trading following the layoffs. Shares hit a 52-week low of $12.76 earlier in the week and last traded around $13.95, bringing the company’s market value below $900 million.
As part of the job cuts, the company said the role of chief growth officer/North American president has been removed. Deanna Jurgens, who holds that role, will leave the company on October 17.
Additionally, chief financial officer Philip Hardin has informed the company that he will be stepping down on October 12 to “pursue another opportunity.” Lubi Kutua, who was previously Beyond Meat’s vice president of financial planning, analytics and investor relations, has been appointed to that role by the board, effective October 13.
The company also cut its full-year revenue guidance, projecting third-quarter net sales of around $82 million, down 23% from the same period in 2021. Full-year 2022 net sales expected is about $400 million to $425 million, which would be 14% to 9% year-over-year. The company previously forecast year-end revenue of between $470 million and $520 million, the filing said.
A request for comment on the changes from Beyond Meat was not immediately returned.
The company announced a 4% reduction in workforce in August, but the news also came when its chief executive, Douglas Ramsey, left the company – his last day was Friday – after his recent arrest got him charged with assault after he allegedly bit a man in the nose. Jonathan Nelson was promoted to operations and supply chain.