Beyond Meat appointed a new Chief Transformation Officer and made further workforce reductions after experiencing a less-than-satisfactory quarter.
Beyond Meat Takes Aggressive Measures to Boost Profitability and Stabilize Business
In response to disappointing sales and softness in the plant-based meat category, Beyond Meat has announced a series of organizational changes, workforce reductions, and cost-reduction measures aimed at reducing operating expenses, improving margins, and stabilizing the business.
The company has cut approximately 44 jobs, about 6% of its global workforce, primarily in North America. This Reduction-in-Force (RIF) is expected to save the company around $5 million to $6 million in cash compensation over the next 12 months, plus additional savings on unvested stock-based compensation.
Beyond Meat is also focusing on stabilizing sales channels by intensifying efforts to regain and expand U.S. retail distribution by year-end to enhance brand presence and stabilize sales amid ongoing softness in key markets.
To drive enterprise-wide transformation, the company has broadened its partnership with consulting firm AlixPartners and appointed John Boken as interim Chief Transformation Officer. His role will focus on operating expense reduction and improved gross margins.
In terms of financial prudence, Beyond Meat aims to strengthen its balance sheet for the long term and achieve EBITDA positive operations by the second half of 2026.
CEO Ethan Brown stated that the company is responding by accelerating its transformation activities. He believes the factors encumbering Beyond Meat's success are transient.
The negative narrative surrounding the plant-based meat category is another factor affecting Beyond Meat's sales. To counter this, the company intends to increase the use of 'Beyond' as the primary brand, reducing emphasis on the facsimile that overshadows the high-quality protein offerings.
Beyond Meat has also closed on a financing facility providing up to $100 million in new senior secured debt from Unprocessed Foods. The company is evaluating potential transactions to address its existing convertible notes prior to maturity in 2027.
Despite these challenges, Beyond Meat is widening its aperture beyond animal protein replicates to meet broader consumer protein needs. Ethan Brown mentioned in a recent interview with Fast Company that Beyond Meat intends to formalize the use of the shortened 'Beyond' mark.
However, it's important to note that Beyond Meat still carries a significant debt of $1.2 billion, thanks to an offering of convertible notes made in March 2021.
References:
- Beyond Meat Appoints John Boken as Interim Chief Transformation Officer
- Beyond Meat Q2 2025 Earnings Call Transcript
- Beyond Meat Cuts 44 Employees in North America
- Beyond Meat Aims to Become EBITDA Positive by Second Half of 2026
- Beyond Meat's Q2 2025 Earnings Show a 19.6% Year-Over-Year Decrease in Net Sales
The company, Beyond Meat, is focusing on financial prudence, aiming to strengthen its balance sheet for the long term and achieve EBITDA positive operations by the second half of 2026. To drive this transformation, they have broadened their partnership with consulting firm AlixPartners and appointed John Boken as interim Chief Transformation Officer, who will focus on operating expense reduction and improved gross margins. Additionally, Beyond Meat is looking to expand its portfolio beyond just plant-based meat alternatives to meet broader consumer protein needs, as indicated by CEO Ethan Brown in a recent interview with Fast Company.
