Plant-based brand Beyond Meat has announced it will reduce its workforce in Europe and North America, as well as suspending its operational activities in China.
In its annual report for the year ended 31st December 2024, Beyond Meat highlighted that it would be implementing “certain organisational changes and further cost-reduction measures”, aiming to strengthen its financial profile while supporting its long-term objectives.
In February, the board approved a plan to reduce Beyond Meat’s current workforce in North America and the EU by approximately 44 employees, representing 6% of the company’s total global workforce. This was due to cost-reduction initiatives, which are intended to reduce operating expenses.
The board also approved plans to suspend its current operational activities in China, which are estimated to stop at the end of the second quarter of 2025. Beyond Meat will reduce its workforce by approximately 20 employees, representing 95% of its China workforce and 3% of the total global workforce. The company also attributed this to cost-reduction initiatives.
Beyond Meat reports losses
Overall, Beyond Meat achieved net revenues of $326.5 million, a decrease of 4.9% year-on-year. Gross profit was $41.7 million, or gross margin of 12.8%, compared to a loss of $82.7 million, or gross margin of -24.1%, in the year-ago period. Net loss was $160.3 million, compared to net loss of $338.1 million in the year-ago period.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was a loss of $101.7 million, or -31.1% of net revenues, compared to an adjusted EBITDA loss of $269.2 million, or -78.4% of net revenues, in the year-ago period.
Beyond Meat president and CEO Ethan Brown commented: “2024 was a pivotal year for Beyond Meat. We returned to year-over-year net revenue growth in the second half, meaningfully expanded gross margin compared to the prior year, sharply reduced operating expenses, and delivered a significant year-over-year improvement in adjusted EBITDA.
“In 2025 we are pursuing four main goals. One, we plan to produce comparable year-over-year top line net revenues as we focus on sustainable operations. Two, we aim to improve gross margin to approximately 20%, with the longer-term goal of ultimately exceeding a gross margin of 30%. Three, we plan to further reduce our operating expenses over the two-year period 2025 and 2026 in an effort to position the business for run-rate EBITDA-positive operations by the end of 2026. Four, we intend to strengthen our balance sheet to improve liquidity and optimise our capital structure. We are pursuing these four measures with considerable confidence in the long-term growth of the global plant-based meat industry and our leadership position therein.”
