Beyond Meat said on Friday it would cut 200 jobs and slashed its annual revenue forecast for the second time, citing slowing demand for faux meat as consumers look for more cheaper options to beat rising prices.
The company also announced the departure of finance chief Philip Hardin at the end of the month and named board director Lubi Kutua as his replacement. Hardin has been in the role for just over a year.
Shares fell more than 10% before the bell, with the company saying rising competition as another reason for the forecast cut.
More traditional names like Tyson Foods and Kellogg as well as newbies have joined the race for market share in the plant-based meat space by offering big discounts.
Global packaged food makers have been wrestling with increased costs tied to labor, ingredients and transportation over the past year, forcing them to raise product prices.
Wall Street analysts, however, have said Beyond Meat does not have the same capacity to increase prices like other package food makers as it is still trying to woo customers to its products.
The company, which had earlier cut its full-year forecast in August, said it now expects annual revenue to be in the range of about $400 million to $425 million, compared with previous expectations of between $470 million to $520 million.
“We are significantly reducing expenses and sharpening our focus on a set of key growth priorities,” Chief Executive Officer Ethan Brown said.
The company said it would incur a one-time cash charge of about $4 million related to the job cuts in the fourth quarter.
The layoffs, which is expected to save about $39 million over the next 12 months, would also see the elimination of the North America president post among other changes.
Beyond Meat, which had about 1,100 employees at the end of last year, expects the reduction in workforce to be complete by the end of year.
