Beyond Meat Goes Into Survival Mode
Talk about burying the lede. If you only read headlines, you might think that Beyond Meat's (NASDAQ: BYND) Friday press release announcing that the plant-based "meat" producer is shooting to be cash flow positive by the second half of 2023 was a piece of good news. It was anything but.
Beyond Meat is reducing its workforce by around 19% as it aims to weather a brutal combination of headwinds. Demand for plant-based meat has weakened, with consumers moving away from the category amid sky-high inflation. Competition is eating away at Beyond Meat's market share, a threat that should not be a surprise. And retailers and distributers have been reducing inventory levels and cancelling promotions, further hurting Beyond Meat's sales.
The company will take approximately $4 million in charges related to the layoffs, but it expects the move to reduce cash operating expenses by $27 million and non-cash expenses by $12 million over the next twelve months. Given the state of the business, Beyond Meat has little choice but to greatly reduce its spending.
Source Fool.com
