Beyond Meat is cutting 19% of its non-production workforce after a weaker-than-expected third quarter.
The plant-based meat company said Thursday that the reduction of approximately 65 employees is part of a broader corporate review. The company is also considering exiting some product lines, changing pricing, shifting its manufacturing and restructuring its Chinese operations.
Beyond Meat’s shares rose 9% in morning trading Thursday.
“We anticipated a modest return to growth in the third quarter of 2023 that did not occur,” Beyond Meat President and CEO Ethan Brown said in a statement.
The company plans to release its third-quarter earnings on Nov. 8. In the meantime, it said it expects revenue of $75 million for the July-September period. That would be 8.5% lower than the same period a year ago.
Beyond Meat also said it now expects full-year net revenue in the range of $330 million to $340 million, which would be 19% to 21% lower than the previous year. Wall Street had expected full-year sales of $365 million, according to analysts polled by FactSet.
The layoffs aren’t the first for Beyond Meat. Last year, the company laid off around 240 people in multiple rounds of cuts, citing pressure from inflation and intensifying competition.
The El Segundo, California, company said it saw weaker sales in U.S. retail and food service and lower-than-expected return on promotional programs. The company recently launched U.S. ads that try to counter perceptions that its products are overly processed and unhealthy.
Beyond Meat has seen a better reception for its products in Europe, where its burgers and chicken nuggets are featured on McDonald’s menus. McDonald’s has tested Beyond Meat’s products in the U.S. but hasn’t added them to its permanent menu.