California-based, leading plant-based meat producer, Impossible Foods, is reportedly planning on laying off ~20% of its workforce, according to an inside source. The company currently employs ~700 workers; the layoff would lead to a reduction of this number by more than 100.

While the company has not responded to requests regarding the layoffs, an internal document revealed separation packages offered to employees at the end of 2022.

Impossible Foods is said to have increased its US retail store sales by more than 50% with its CEO, Peter McGuiness, claiming the company has a “strong balance sheet and a good cash position.”

Analyst QuickTake: While the layoffs might seem contradictory to the company’s sales figures, it should be noted that the plant-based meat sector has been on a downward path with less market activity and product launches during Q4 2022. Further information regarding the industry’s performance can be found in our plant-based quarterly update for Q4 2022 . These layoffs come on the heels of an initial 6% workforce reduction by the company in October 2022 and a combined 240 staff layoff by Impossible Foods’ closest competitor, Beyond Meat, in August 2022 and October 2022 .