USA – Meati Foods, a Colorado-based plant-based protein company, is undergoing significant changes in its leadership structure and employee base as it adapts to market dynamics and financial sustainability.

The recently appointed CFO, Phil Graves, has assumed the role of CEO, emphasizing the focus on building a financially sustainable business.

Co-founder Tyler Huggins is transitioning to Chief Product and Brand Officer, where he will oversee the brand’s expansion of MushroomRoot products in 2024.

However, with the leadership transition, Meati Foods is also implementing a workforce reduction, laying off 13% of its employees.

Graves acknowledged the challenge these changes pose to growth companies but highlighted their necessity for aligning resources with profitability objectives.

Meati Foods started the year with plans to expand its retail presence to 10,000 stores nationwide, aiming for continued business scaling while conserving cash.

The decision to cut jobs aligns with the fundraising market signaling a need for the company to accelerate its path to profitability and position MushroomRoot as a revolutionary protein product.

The layoffs at Meati Foods aim to contribute to a broader trend in the food industry, with data from Challenger, Grey & Christmas Inc. revealing 6,656 layoffs in the sector last month, the highest monthly total since November 2012.

Meati had previously implemented workforce reductions in September 2023, cutting 10% of its staff.

The move comes at a time when the plant-based and alternative protein space faces challenges, with consumer interest waning in recent months.

Other industry players, such as Beyond Meat, have also undergone workforce reductions to drive sustainable growth in response to market shifts.

While Meati did not disclose the number of jobs affected or provide details about severance packages, the company assured that it does not anticipate any supply chain disruptions resulting from the layoffs.

The leadership changes and workforce reductions are framed as strategic decisions to better serve customers and pave the way for long-term, sustainable growth.

Despite the reduction in its workforce, Meati Foods appears financially stable.

The company’s Mega Ranch scaled production last year, and its products are available in over 3,600 locations nationwide, including major retailers like Whole Foods Market, Meijer, Cub Foods, and Sprouts Farmers Markets.

Meati has also gained attention from celebrities, with gymnast Aly Raisman and NBA star Chris Paul joining Derek Jeter and Rachael Ray as investors in December 2023.

 

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