A massive food company is now beginning job cuts as the CFO transitions into the role of CEO, according to a fresh press release.
Recently appointed CFO Phil Graves will take over as CEO of Meati Foods as the company reduces its workforce by 13%, reports Retail Dive.
Phil Graves is focused on building a financially sustainable business, while co-founder Tyler Huggins is moving to the role of chief innovation officer where he will oversee the brand’s rollout of more of its MushroomRoot products in 2024.
“While these types of changes always present a challenge for growth companies, they are essential for aligning resources with profitability objectives,” the company said in a press release.
Meati Foods started the new year strong with plans to expand its retail footprint to 10,000 stores nationwide.
The Colorado-based company continues to scale its business while conserving cash.
Along with the shuffling of its C-suite, the company is cutting its workforce.
“The fundraising market has signaled that we need to accelerate our path to profitability and better position MushroomRoot as the revolutionary, category-creating protein that it is,” said a company spokesperson in a statement.
Last month, 6,656 layoffs were announced in the food industry alone, according to data from Challenger, Gray & Christmas.
It’s the highest monthly total of layoffs for the sector since November 2012.
However, this isn’t the first time Meati Foods has slashed workers to focus on profitability.
Just last September, the company cut 10% of its workforce.
Meati did not disclose how many jobs were being affected this time around, nor the details of severance packages and the company does not expect any supply chain disruptions as a result of the job cuts.
“These changes allow us to better serve our customers and pave the way for long-term, sustainable growth. Our future is bright,” said Graves.
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Also Read: Another Popular Restaurant Now Declares An Unexpected Bankruptcy
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This massive grocery store now closes down three locations in various states, confirming more reasons behind the closures.
While Walmart is growing its footprint, it has also pulled back in certain areas citing low profitability.
Locations in San Diego and El Cajon, California, which is located about 16 miles from San Diego, shut on February 9, per Business Insider.
On Friday, February 16, the location on South High Street in Columbus, Ohio closed down.
That location’s pharmacy is still open. It too will shut its doors for good on March 4.
Walmart closed at least 22 stores last year.
Now, it has shut three stores in just a span of weeks.
In a letter to the Mayor of Columbus, Walmart explained that the closing location was not meeting expectations for profits.
“This decision was not made lightly and was reached only after a careful and thoughtful review process,” Walmart said.
“While our underlying business is strong, this store hasn’t performed as well as we hoped, and we made the decision to not renew the lease,” the company added.
The announcement came just days before the store shut for good, with employees only finding out about the closure on February 2.
Luckily, the store’s roughly 180 workers have months to search for jobs at other locations, reports The-Sun.
If they fail to get a post at another store by May 3, employees will be terminated, according to Walmart’s letter.
There are at least ten other Walmart stores in the Columbus area.
The San Diego and El Cajon locations, within miles of each other, have also impacted shoppers and workers alike.
And several other Walmart’s are remaining open in the San Diego area.
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Also Read: This Massive Mall Retailer Is Now Closing In California
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