Beyond Meat to Cut 6% of Workforce Amid Slumping Plant-Based Demand

Beyond Meat is cutting 6% of its workforce, approximately 44 employees, due to a slump in demand for its plant-based burgers, chicken, and sausages. The company plans to incur a one-time charge of $800,000 to $1.3 million. CEO Ethan Brown cited softness in U.S. retail and certain international foodservice markets as the reason for the decline in revenue, which fell 19.6% YoY to $75 million. Beyond Meat is also accelerating its transformation activities, including reducing operating expenses and prioritizing core product distribution.

Beyond Meat (NASDAQ: BYND) reported its second quarter 2025 financial results, revealing a significant decline in net revenues and announcing a workforce reduction to address ongoing challenges. The company's net revenues decreased by 19.6% year-over-year (YoY) to $75.0 million, driven by an 18.9% volume decrease and a 0.9% lower revenue per pound [1].

The company's net loss for the quarter was $33.2 million, or $0.43 per share, with a gross margin of 11.5% compared to 14.7% in the prior year. This deterioration in performance was primarily attributed to weak category demand, reduced distribution points in U.S. retail, and lower sales in the international foodservice sector [1].

In response to these challenges, Beyond Meat has announced a reduction in workforce affecting 44 employees (6% of its global workforce). The company expects this reduction to generate $5.0-$6.0 million in cash compensation savings over the next twelve months. Additionally, the company has appointed John Boken as interim Chief Transformation Officer, bringing restructuring expertise from AlixPartners to accelerate cost-cutting initiatives [1].

Beyond Meat's CEO, Ethan Brown, commented, "We are disappointed with our second quarter results, which primarily reflect ongoing softness in the plant-based meat category, particularly in the U.S. retail channel and certain international foodservice markets. We are responding by accelerating our transformation activities, including more rapidly and aggressively reducing our operating expenses to fit anticipated near-term revenues; prioritizing increased distribution of our core product lines; and investing in margin expansion initiatives across these core products" [1].

The company's balance sheet remains concerning, with $117.3 million in cash against $1.2 billion in debt. Cash burn accelerated with $59.4 million used in operations during the first half of 2025, compared to $47.8 million in the prior year period. The company drew $40 million from its Delayed Draw Term Loan Facility during the period, indicating ongoing liquidity needs [1].

Beyond Meat's Q2 2025 results paint a concerning picture of a company facing substantial challenges. The company's Adjusted EBITDA loss expanded to $26 million, representing -34.7% of revenues compared to -24.7% a year ago. Breaking down by segment reveals widespread weakness, particularly in the U.S. retail channel where revenues plummeted 26.7% [1].

References:
[1] https://www.stocktitan.net/news/BYND/beyond-meat-reports-second-quarter-2025-financial-ovvm8fqule1d.html