Beyond Meat will lay off 40 people after multi-million dollar loss
COLUMBIA, Mo. (KMIZ.)
Plant-based food company Beyond Meat announced it's laying off 40 people after a multi-million dollar loss, but the company didn't say if the layoffs would affect the company's Columbia plant.
In a press release, the company reported its second largest quarter ever in terms of money made in the second quarter of 2022, but still posted a loss of money.
The company said it would cut 40 positions, but did not specify where those cuts would come from. A company news release said it expected the cuts to save them $8 million.
Net revenues made in the quarter sat at $147 million, which is a decrease of 1.6 percent compared to last year. The company reported a gross profit loss of $6.2 million so far in 2022, and the team reports a net loss of $97.1 million this quarter.
Beyond Meat has been up and running since 2009, and it produces plant-based meat substitutes. The company has a plant in north Columbia, and expanded it back in 2018.
Reports state the layoffs are a result of the company struggling to turn partnership into profitable endeavors with some of the biggest restaurant companies like McDonald's and "Yum Brands." And as the company announces new products, it's still figuring out the best way to make them, which is getting pricey.
Beyond Meat's chief financial officer Phil Hardin said increased manufacturing costs is also contributing to the drop in revenue.
"Increased manufacturing costs including depreciation, increased materials costs, higher transportation and warehouse costs and an increase in inventory as some reasons for the drop in revenue", said Hardin.
The press release also states the business is focusing on manufacturing cost reductions and strengthening its retail business.
