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EL SEGUNDO, CALIF. ÔÇö Strategic Review and Workforce Reduction: Beyond Meat, the plant-based meat alternative company, is currently conducting a strategic review of its global operations in response to a deteriorating sales situation. This announcement, made on November 2, comes just six days before the release of their third-quarter earnings on November 8. As part of their efforts to address the challenges they are facing, Beyond Meat has revised its full-year outlook and plans to cut its non-production workforce by 19%.

Ethan Brown, president and CEO of Beyond Meat, acknowledged the unexpected decline in growth during the third quarter of 2023, which he attributed to various sector-specific and consumer headwinds. In response to these challenges, the company aims to implement measures within their control to counteract the negative effects. Additionally, they will pursue a substantial reduction in operating expenses to enhance their cost structure.

The strategic review aims to reduce operating expenses and may involve narrowing the company’s focus on specific growth opportunities. Furthermore, Beyond Meat plans to prioritize initiatives that focus on gross margin expansion and cash generation. Potential actions may include exiting select product lines, altering pricing structures within certain channels, implementing inventory reduction measures, optimizing manufacturing capacity and real estate footprint, as well as evaluating and potentially restructuring operations in China.

To facilitate these cost-saving efforts, Beyond Meat will be reducing its workforce by approximately 65 employees, which accounts for 19% of the non-production workforce and 8% of the company’s total global workforce.

Beyond Meat had previously forecasted full-year net revenues to be within the range of $360 million to $380 million in August. However, they have now adjusted their projection to anticipate net sales between $330 million and $340 million for the year.

This revision in the company’s full-year outlook can be attributed to three key factors. Firstly, there has been a softness in the demand for plant-based meat alternatives within US retail and foodservice channels. Secondly, the promotional effectiveness of Beyond Meat’s products has been lower than expected. Lastly, there has been an unfavorable shift in the sales mix, with weaker-than-anticipated sales of their core products (Beyond Burger, Beyond Beef, and Beyond Sausage) when compared to certain non-core products (such as Beyond Steak, Beyond Chicken Tenders, Beyond Popcorn Chicken, and Beyond Chicken Nuggets).

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