Upside Foods, a California-based producer of cultivated chicken, laid off 26 employees in a restructuring effort to overcome political, regulatory, and macroeconomic challenges. The executive and leadership teams are to be restructured as well to reduce top-heavy structures.

According to CEO Uma Valeti, the company will now prioritize a narrower set of goals, including delivering on delayed milestones. Upside Foods plans to hire strategically, particularly in its sales team, as it plans to expand distribution, achieve critical milestones, and launch new products in the next two years.

Analyst QuickTake: Cell-cultured meat companies are facing heavy pushback from regulatory bodies around the world, stifling their ability to innovate and delaying timelines. Despite UPSIDE Foods being one of the two companies that received approval for cultured meat in the US, recent regulations in Florida and Alabama have posed a roadblock for US-wide expansion. Moreover, as evident in our Q1 2024 Food Tech report, cell-cultured funding fell to an all-time low, making it harder for companies to secure funding and even forcing some to cease operations .