Beyond Meat To Axe 19% Jobs, Revises Down FY22 Sales Outlook Below View; Stock Down In Pre-Market
Beyond Meat, Inc. (BYND), a producer of plant-based meat substitutes, said on Friday that it has slashed its revenue forecast for the full-year, amidst current demand, inflationary trends. The updated revenue guidance comes in below analysts’ expectations.
It also decided to cut 19 percent of global workforce as part of its efforts to reduce expenses.
For the fiscal 2022, the artificial meat maker now expects revenue of around $400 million to $425 million, lesser than its previous expectation of $470 million to $520 million. Analysts, on average, expect it to report revenues of $494.55 million.
Based upon the preliminary results, the plant based meat maker now forecast net revenue of around $82 million for third-quarter, a decrease of approximately 23 percent, compared with the same period a year ago.
Analysts, on average, polled by Thomson Reuters expect the firm to post revenues of $117.11 million.
Beyond Meat decided to axe its current staff strength by around 200 employees, resulting one-time cash charges of approximately $4 million, primarily consisting of severance payments, employee benefits, and related costs.
The firm expects that the majority of these charges will be incurred in the fourth quarter, and that the reduction in force will be substantially complete by the end of 2022.
The expected operating expense savings from the company’s staff reduction program is projected to be at around $39 million over the next 52-week period.
BYND is trading down 10.35 percent at $13.25 per share in pre-market on the Nasdaq.
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