Beyond Meat (NASDAQ: BYND) is prepared to cut 19% of its staff members, approximately 200 employees, it announced Friday in a regulatory filing. The cuts are anticipated to be finalized by the end of the year as the company strives to achieve cash flow-positive operations within the second half of 2023. The company’s shares fell over 7% during pre-market trading amid the news.
In response to the layoffs, the company estimates one-time cash charges of USD4 Million. The charges cover notice period and severance payments, employee benefits, and related costs, with the majority of the spend to be incurred in the fourth quarter of 2022.
President and CEO Ethan Brown commented, “Beyond Meat is implementing measures to drive more sustainable growth, emphasizing the achievement of cash flow positive operations within the second half of 2023. 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.”
The announcement comes as the company also let go of chief operating officer Doug Ramsey after the executive was arrested for allegedly biting a man’s nose in an Arkansas parking garage. Furthermore, Chief Financial Officer Philip Hardin will be leaving the company to pursue other opportunities, while chief growth officer Deanna Jurgens will also be leaving the company after her role was eliminated.
Beyond meat has yet to comment on the changes.
Brown added, “We continue to make strong progress against the levers of mainstream adoption—taste, health, and price–and are steadfastly advancing key strategic partnerships. The global climate crisis underway dictates greater, not less, urgency in the adoption of all solutions of which ours is among the most immediate and powerful. We believe our decision to reduce personnel and expenses throughout the Company, including our leadership group, reflects an appropriate right-sizing of our organization given current economic conditions. We remain confident in our ability to deliver on the long-term growth and impact expected from our global brand.”