Oatly has revealed it will be cutting its employee headcount, after reporting a widening loss for its third quarter.
The plant-based milk maker once again revised its full-year outlook, and now expects revenue growth of 9% to 12%, a downgrade from its already-trimmed down expectation of a 24% to 29% increase.
The company said that its Q3 results – which included a net loss of $107.9 million – were below its expectations, after it was hurt by pandemic restrictions in China, production challenges and “foreign exchange headwinds”.
For the quarter ended 30 September, Oatly recorded revenue of $183 million, a 7% increase compared with the year-ago period.
In its Q3 earnings statement, the company revealed that it planned to cut its workforce as part of a raft of cost-reduction measures.
The oat drink giant did not disclose how many of its employees would be affected by the move but said an overhead and headcount reduction would impact up to 25% of the costs related to group corporate functions and “regional EMEA layers”.
Oatly CEO, Toni Petersson, said: “Third-quarter financial results were below our expectations, largely driven by Covid-19 restrictions in Asia, production challenges in the Americas and continued foreign exchange headwinds”.
“However, we continue to see strong velocities, year-over-year sales volume growth and minimal price elasticity globally which we believe demonstrates the power and resilience of the brand.”
© FoodBev Media Ltd 2024
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