Plant-based meat maker Beyond Meat is laying off four percent of its global workforce after a challenging second quarter.
The redundancies are part of a cost-cutting strategy as inflation forces consumers to look for cheaper options.
The California-based firm, which intends to offer its vegan burgers and other foods at the same price as meat, announced on Thursday, August 4, that the plan was taking longer than first expected.
CEO Ethan Brown said inflation has increased the necessity of attaining that target.
Mr. Brown said the company’s plant-based ground beef ended up selling for around $8 per pound, while actual ground beef costs around $5 per pound.
He said: “That is a very difficult proposition when consumers have very high inflation going on.”
Beyond Meat estimates that this layoff will save it $8 million.
In December of last year, the company employed 1,108 full-time employees and 311 full-time contract workers.
Its second-quarter loss rose to $97.1 million from $19.7 million in the same period the previous year.
This was higher than analysts had predicted.
Revenue decreased by 1.6 percent to $147 million.
Beyond Meat also reduced its full-year sales target to $470 million to $520 million, down from $560 million to $620 million before.
Mr. Brown stated that the company’s focus for the remainder of the year will be on decreasing operational expenses and production costs.
The layoffs are expected to cost the corporation $1 million in the third quarter.
After-hours trading saw little fluctuation in the company’s stock price.
Source: The Wall Street Journal