Beyond Meat Cuts: 200 Jobs, Revenue Outlook, Top Execs
In the guise of “a strategic shift,” Beyond Meat, Inc. (Nasdaq: BYND) announced major cuts today, including reducing its current workforce by 200 employees.
The job cuts represents approximately 19% of the company’s total workforce, almost five times the previously announced plan to cut 4% of the workforce just this August.
“While we believe the current headwinds facing our business and category—including record inflation—are transient, our mission, brand, and long-term opportunity endure. To manage through the current environment and realize the opportunity ahead, we are significantly reducing expenses and sharpening our focus on a set of key growth priorities,” commented CEO Ethan Brown.
The firm estimates the reduction in workforce will result in one-time cash charges of approximately $4 million, largely consisting of notice period and severance payments, employee benefits, and related expenditures.
Part of the job cuts is the position of Global Chief Growth Officer and President, North America as its holder, Deanna Jurgens, leaves the firm. The sales department will now report to Mike Sharman, who will join the company as Senior Vice President, Global Sales.
CFO Philip Hardin also stepped down and will be replaced by Lubi Kutua, the firm’s current Vice President, Financial Planning & Analysis and Investor Relations. Related to this, the current Vice President, Corporate Controller Henry Dieu has been appointed as principal accounting officer.
Meanwhile, COO Doug Ramsey is being suspended permanently. Jonathan Nelso, who took the reins to lead operations, will continue on his function now on a permanent basis, as Senior Vice President, Operations. Ramsey was arrested after a traffic-related altercation where he reportedly bit a man “ripping the flesh on the tip of the nose.”
Beyond Meat is also lowering its full-year revenue forecast. Based on preliminary results, the firm now anticipates Q3 2022 net revenues of approximately $82 million, a 23% reduction from the prior-year period. Net revenues for the full year 2022 are estimated to be in the $400 million to $425 million range, indicating a 14% to 9% decline from the full year 2021.
This contrasts to the company’s earlier forecast of net revenues in the range of $470 million to $520 million for fiscal year 2022.
Over the next twelve months, the reduction in force, combined with the elimination of certain open positions and changes to the executive leadership team is expected to save approximately $27 million in cash operating expenses and an additional $12 million in non-cash savings related to previously granted, unvested stock-based compensation that would have vested.
Furthermore, as a result of these measures, the company expects to receive approximately $3 million in one-time non-cash savings in the Q3 and Q4 quarters of 2022 from the reversal of previously expensed, unvested stock-based compensation.
Beyond Meat last traded at US$14.78 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
