UPSIDE Foods, a cultivated meat company based in Berkeley, California, has confirmed recent workforce reductions, citing a strategic restructuring aimed at improving operational efficiency. The layoffs come as part of an ongoing effort to streamline operations and focus on the commercialization and scaling of its products.
A company spokesperson told both AgFunderNews and Alt-Meat: “We’ve reorganized our team and operations to stay agile and efficient to meet any challenges ahead,” but they did not disclose specific numbers or details about the restructuring.
This marks the third round of workforce reductions in the last year, following similar cuts in February and July 2024. The decision reflects ongoing financial pressures within the company and the broader cultivated meat industry, which continues to grapple with the difficult task of scaling production while navigating regulatory hurdles.
Shift in production strategy
Last year, the company, which previously planned to build a large-scale facility in Glenview, Illinois, opted to pause the construction to focus on operations at its existing EPIC facility in Emeryville, California. At the time, the company expressed confidence in its ability to scale up operations at EPIC, noting that the facility had already conducted numerous successful runs at the 2,000-liter scale.
Upside’s leadership indicated that these accomplishments would allow the company to move to the next phase of scaling production. However, with the recent shift in strategy, some of the projections outlined in last year’s update may no longer align with the company’s current trajectory.
Despite the setbacks, the company remains committed to building a full-scale production facility in the future, although it has not provided a revised timeline.
Industry-wide challenges
Upside Foods is not alone in facing these challenges. Many companies in the cultivated meat industry are struggling with similar issues. Although significant investment has flowed into the sector over the years, few companies have been able to commercialize cultivated meat products at a scale that would allow for consistent, profitable production (yet).
Regulatory approval barriers delaying market entry and the difficulty of scaling production continue to be major hurdles. As funding becomes harder to secure, many companies are being forced to reassess their strategies, prioritizing more cost-effective and immediate solutions while navigating these persistent barriers.
Australian cultivated meat producer Vow faced its own difficulties earlier this year, cutting nearly a third of its workforce while seeking additional funding to stay operational. Like Upside, Vow’s strategy is being adjusted in light of the financial and regulatory challenges that have become commonplace in the sector.
