In a strategic move to navigate the challenging economic landscape, cultivated meat pioneer UPSIDE Foods has initiated a fresh round of layoffs. This decision comes as the company aims to conserve capital and extend its operational runway while expanding its facility in Emeryville, California. The exact number of layoffs remains undisclosed, but the company has confirmed the cuts in a statement to AgFunderNews following a wave of LinkedIn posts from employees seeking new opportunities.
UPSIDE Foods’ decision to eliminate positions is part of a broader strategy to remain agile amidst an unpredictable macroeconomic environment. “To stay agile in the face of an uncertain macroenvironment and preserve the resources needed to reach our milestones, we made the difficult decision to eliminate a number of positions,” the company stated. Despite the layoffs, UPSIDE Foods expressed deep gratitude for the contributions of its departing team members and reaffirmed its commitment to bringing cultivated meat to the global market.
This round of layoffs follows a similar move in February when UPSIDE Foods made “selective role eliminations” and paused plans for a large-scale facility in Chicago. Instead, the company chose to focus on expanding its smaller ‘EPIC’ site in Emeryville. The shift in strategy underscores the company’s adaptive approach to scaling its operations in a financially prudent manner.
The layoffs come on the heels of UPSIDE Foods’ recent ‘Freedom of Food’ pop-up event in Miami, which was a direct response to a ban on the production and sale of cultivated meat in Florida. Governor Ron DeSantis signed the ban into law, characterizing it as a measure to protect traditional farmers and resist what he described as the “global elite’s plan to force the world to eat meat grown in a petri dish.” UPSIDE Foods, however, argues that the ban disregards food safety experts, limits consumer choice, and stifles American innovation.
Similar legislative actions are unfolding across the United States. Alabama has enacted a comparable ban, citing vague “concerns with the process,” while Ohio lawmakers have proposed a bill to prohibit federal funding for cultivated meat, citing undisclosed “health risks to the human body.” The office of Rep. Warren Davidson (R-OH), who introduced the Ohio bill, did not respond to inquiries about the evidence supporting these health risk claims.
Despite these legislative hurdles and a challenging funding environment, UPSIDE Foods’ founder and CEO Dr. Uma Valeti remains optimistic about the future of cultivated meat. In a recent TED Talk, Dr. Valeti emphasized the rapid progress of the industry, noting that it has secured regulatory approvals in several countries, including the United States, Singapore, Israel, and soon Australia. He highlighted the significant environmental benefits of cultivated meat, such as lower greenhouse gas emissions and reduced land use, when grown at scale using renewable energy.
UPSIDE Foods, which has raised $608 million since its inception in 2015, acknowledges that its whole cut technology is still in development. Currently, its chicken fillets are produced in 2-liter flasks. However, the company is optimistic about its hybrid approach, which involves growing cells in 2,000-liter bioreactors and combining them with plant-based meat to create products like nuggets and patties. The expansion at the EPIC facility in Emeryville aims to demonstrate the scalability of this process while maintaining taste, quality, and safety.
As the cultivated meat industry continues to evolve, other players like GOOD Meat and Believer Meats are also making strides. GOOD Meat is focusing on process development and new cell lines, while Believer Meats is building what it claims will be the largest cultivated meat production facility in the world in North Carolina, expected to be operational by the end of 2024.
UPSIDE Foods’ recent layoffs and the broader legislative pushback highlight the complex and evolving landscape of the cultivated meat industry. As the company navigates these challenges, its commitment to innovation and sustainability remains unwavering.