(Bloomberg) -- Beyond Meat Inc. cut its revenue forecast for the second time in three months and launched a money-saving program — a sign that demand remains weak for plant-based proteins.

The company said Thursday that it now expects full-year revenue of $330 million to $340 million, down from its prior range of $360 million to $380 million. The revised guidance represents a decline of as much as 21% from 2022.

Beyond Meat also plans to eliminate 65 jobs, or 8% of its global workforce, as it reduces operating expenses. The cuts will result in up to $10.5 million in savings, though the company will incur up to $2.5 million in one-time cash charges that it expects mostly in the fourth quarter. 

Interest in meat-substitute products that mimic the taste and feel of beef and sausages has waned after an initial flurry of interest when they were introduced. Beyond Meat’s announcement “underpins soft consumer demand for plant-based meat, which we expect will continue into 2024,” Bloomberg Intelligence analysts Jennifer Bartashus and Jibril Lawal wrote in a research note. 

The efforts to trim costs at Beyond Meat also include pricing changes, shifts in manufacturing capacity and real estate, the possible discontinuation of some products and a potential restructuring of operations in China. Beyond Meat expects to generate free cash flow of about $7.6 million in the third quarter, but that trend isn’t expected to persist into the fourth quarter.  

The shares jumped as much as 16% in New York trading Thursday, the biggest intraday gain since July. The stock had slumped 52% for the year through Wednesday’s close.

An anticipated “modest return to growth” didn’t occur last quarter, Chief Executive Officer Ethan Brown said in a statement. Revenue for the period is expected to be about $75 million, below the Bloomberg analyst estimate of $88.5 million.

Sales were hurt by continued weakness in the US amid sagging demand, promotions that didn’t deliver as predicted and weaker-than-expected sales of core products, such as the Beyond Burger, relative to items like faux chicken nuggets and steak. 

“The pricing review is most worrisome,” Piper Sandler analyst Michael Lavery wrote in a note, questioning whether the company can raise prices without further damaging demand. Consumers traded down to traditional animal meat as inflation stretched budgets, he said.

“We still believe improving taste and quality matter the most and is far more important than consumer education,” Lavery said. 

Beyond Meat shares plunged in August after it cut its outlook amid dwindling cash reserves. At the time, Brown acknowledged the bumpy path to “mainstream adoption” of plant-based products. Another goal of the expense reduction strategy is to “directly counter misinformation about our products and category,” Brown said.

(Adds analyst commentary and updates shares.)

©2023 Bloomberg L.P.