By Katherine Hamilton

Beyond Meat shares fell after the company said it plans to cut jobs and cease operations in China.

The stock was down 2% to $3.50 after the close on Wednesday. Shares ended the market session down 4.3% at $3.56, close to the 52-week low of $3.30. Beyond Meat's shares have plunged 64% in the last year.

The plant-based meat maker said it expects to reduce its workforce in North American and Europe by about 44 employees, which represents roughly 17% of the company's non-production employees. It's about 6% of Beyond's total global workforce.

The decision, which was approved by the board on Monday, was made in an effort to cut operating expenses, the company said in its fourth-quarter earnings report.

Beyond expects to incur one-time charges of $1 million to $1.5 million from the job cuts, most of which will be recorded in the first quarter.

Once the eliminations are complete, Beyond expects they will result in $5.5 million to $6.5 million in cash compensation operating expense savings in 2025.

Beyond is also suspending its operations in China by the middle of this year. It is reducing its workforce in China by about 20 employees, which is 95% of the workforce in that country, the company said.

Costs from ceasing China operations are expected to be $12 million to $17 million, most of which will take place in the first quarter. Savings are expected to be $500,000 to $1 million for this year.

"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," Chief Executive Ethan Brown said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 26, 2025 17:20 ET (22:20 GMT)

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