(Reuters) -Beyond Meat cut its annual revenue forecast for the second time this year as consumers curtail spending on its pricier plant-based products and announced new job cuts and a review of global operations as part of a cost-reduction plan.
Shares rose about 6% in early trading as the company projected about $9.5 million to $10.5 million in cash operating savings for 2024, mainly from laying off about 65 employees, or about 19% of global non-production workforce.
Beyond Meat (NASDAQ:BYND) expects 2023 net revenue to be in the range of $330 million to $340 million, compared with its prior outlook of $360 million to $380 million.
The company has been grappling with inflation-weary customers veering back to lower-priced animal meat at a time when it faced rising competition in its plant-based business from Tyson Foods (NYSE:TSN) and privately owned Impossible Food.
Meanwhile, the segment has also faced uncertainty around the health benefits of plant-based meat.
In October 2022, Beyond Meat had disclosed plans to cut 200 jobs in an attempt to rein in costs.
Beyond Meat said on Thursday it did not expect to sustain free cash flow positive operations in the fourth quarter.
The company also estimated third-quarter net revenue of $75 million, compared to analysts' expectations of $87.9 million, according to LSEG data.