South Bay's Beyond Meat Announces Mass Layoff As Demand Falters

EL SEGUNDO, CA — Beyond Meat will lay off about 65 employees, roughly 19 percent of its non-production workforce, the company announced Thursday.

“We anticipated a modest return to growth in the third quarter of 2023 that did not occur, reflecting further sector-specific and consumer headwinds,” President and CEO Ethan Brown said in a prepared statement. “Even as we implement measures to address those headwinds that are within our sphere of influence, we intend to pursue a further, sizable reduction of operating expenses to improve our cost structure.”

Beyond cited weak sales in U.S. retail and food service markets, a reflection of flagging demand for plant-based meat. Net revenue in 2023 for Beyond is projected at around $330 million to $340 million, a roughly 20 percent drop compared to 2022, according to the El Segundo-based company.

In addition to the layoffs, Beyond plans to reduce inventory, review pricing, potentially stop certain product lines and possibly restructure operations in China, according to the company.

The job cuts, combined with the elimination of certain open positions, are expected to save Beyond between $9.5 million and $10.5 million in operating expenses, plus up to $2 million in stock, according to the company.

The layoffs aren't the first for Beyond. Last year, it laid off about 240 people in multiple rounds of cuts, citing pressure from inflation and intensifying competition.

U.S. demand for plant-based meat has plummeted this year. U.S. retail dollar sales of fresh meat alternatives, like sausage and burgers, were down 21.5 percent this year through Oct. 8, according to Circana, a market research firm. Frozen plant-based meat sales, including items like tenders and nuggets, were down 6 percent.

Brown has said that plant-based meat sales were hurt by high inflation, which sent some shoppers back to cheaper animal meats. Plant-based meat is also fighting perceptions that it's overly processed and unhealthy, stoked in part by ads released by rival food companies.