Meatless burger and sausage maker Impossible Foods Inc. is preparing to cut about 20% of its workforce, according to a person familiar with the matter.
The Redwood City, California-based company currently employs approximately 700 employees. A new round of dismissals could reduce that amount by more than 100.
Impossible Foods also offered voluntary severance pay and benefits to employees through the end of 2022, said the person, who asked not to be named discussing personal information. an internal document seen by Bloomberg Confirmed severance package being offered. The company had previously cut workforce in October, when it cut its workforce by about 6%.
Impossible Foods did not respond to a request for comment.
Closely held Impossible Foods recently said its sales were up more than 50% in 2022 in dollar terms. we retail stores. In a September interview, Chief Executive Officer Peter McGuinness said Impossible Foods has a strong balance sheet and good cash position.
See also: Popular fake meat burgers become another food craze
Impossible Foods has quickly expanded to restaurants and supermarkets. Keeping up with the pace will become challenging as the broader plant-based meat category is showcased. According to market research firm IRI, supermarket sales of refrigerated meat alternatives fell 15% by volume for the 52 weeks ended January 1, while they declined 14% in dollar terms.
According to market researcher NPD Group, orders for plant-based burgers at restaurants and food-service outlets declined 9% in the 12 months that ended in November. Impossible Foods sells products to major restaurant chains including White Castle, Qdoba and Burger King, which offers the Impossible Whopper.
Data from consumer-experience strategy firm HundredX also suggests declining interest. percentage of buyers Who? According to feedback received from 1,723 consumers who have eaten Impossible products in the past year, but say they are less likely to eat them in the future.
Beyond Meat Inc., a major competitor to Impossible Foods, also cut its workforce last year amid declining sales. The company’s stock has gained nearly 35% this year after falling 81% in 2022.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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