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Impossible Foods cuts 6 percent of its workforce in restructuring
https://www.whatjobs.com/news/usa/us-business-news/impossible-foods-cuts-6-percent-of-its-workforce-in-restructuring
By Nithya Bose in US business news, posted October 11, 2022
Impossible Foods layoffs 6 percent of its 800-person headcount as the plant-based meats maker strives to position itself for rapid growth.
CEO Peter McGuinness said the reorganization for the past two months has “created clear supply-and-demand functions.”
He stated the company is currently focusing on research and development without revealing any other details.
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Mr McGuinness said: “And we’ve made the very difficult decision to eliminate certain roles that have become redundant to others in the organization or that are no longer aligned with our core business priorities.”
Affected workers were notified on Thursday, October 6.
The terminated employees will get at least 12 weeks of pay plus an additional week for each year of service at Impossible.
They will also be given a one-year extension to exercise stock options at the firm, which is still privately held.
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Mr McGuinness added: “As we continue to scale, we’ll hire strategically to build new muscles and capabilities that will further accelerate our growth.”
He joined Impossible in April as CEO from Chobani, where he was a chief operating officer.
That experience could help Impossible’s ambitions to boost its supermarket footprint.
While Impossible claims to be witnessing sales growth, the zeal around most of the plant-based meat market has recently died down.
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It is mostly due to higher costs compared to ordinary meat as customers deal with the sharpest inflation in decades.
Deloitte Consulting has said slower sales may be due to market saturation.
Beyond Meat in particular has suffered in recent quarters.
McGuinness stated that the firm is seeking to expand its distribution channels with restaurants and retailers.
Source: Bloomberg
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