Report: Impossible Foods To Cut Around 6% of Workforce

Impossible Foods has laid off around 6% of its 800-person workforce under a structural reorganization led by CEO Peter McGuinness, according to media reports.

**What happened?**

Citing an internal memo from McGuinness to staff members viewed by the site, Bloomberg reported on Thursday that the cuts had been in the works for two months and were based on “clear supply and demand functions.”

“Earlier this week we proactively made some organizational changes that strengthen our company and establish clear supply and demand functions to position us for our next phase of expansion,” a spokesperson told NOSH via email. “As a result, some roles were eliminated, but we’re continuing to actively recruit for key positions that will enable our continued growth.”

**What does this mean?**

The layoffs come amidst a tumultuous year within Impossible’s executive team. After announcing that founder Pat Brown was stepping down as CEO in March to become the company’s chief visionary officer, Impossible revealed last month that Brown would change roles again, departing the c-suite to head up Impossible Labs, a new research arm of the business, with the R&D team now reporting to McGuiness. In total eight executives have reportedly departed the company since McGuiness took the helm, including chief experience officer Steve Turner and chief science officer John York.

The company is also in the midst of a legal dispute with fellow alt-meat maker Motif Foodworks, which Impossible is accusing of infringing on its patents by introducing a heme protein into its plant-based meat.

Last month Impossible debuted new frozen meals, a major step in the company’s efforts to diversify its portfolio beyond center-of-plate proteins and offer more convenience oriented options. Until now Impossible has only done so with co-branded CPG products or restaurant menu items, such as Burger King’s Impossible Whopper. It remains unclear if the meals were developed after McGuiness became CEO or had already been in the works.

The layoffs come amidst slipping sales and a broader economic contraction across the once red-hot plant-based meat industry. Earlier this week meat company JBS chose to shut down its alt-meat division Planterra Foods, which produces the Ozo line of products. One hundred and 121 employees based out of Planterra’s U.S. headquarters and factory have been impacted by the closure, though JBS has said it is working to help these team members find work at other JBS facilities.

Meanwhile, earlier this year, meat producer Maple Leaf Foods said it would also scale back its plant-based division, Greenleaf Foods and Beyond Meat laid off 4% of its own global workforce.

This article has been updated with a statement from an Impossible Foods spokesperson.