Vegan egg maker Eat Just cuts jobs after raising money

EAT Just, a closely held maker of cultivated chicken and plant-based eggs, has dismissed roughly 40 employees, less than a month after raising US$16 million, according to people familiar with the matter.

“We took steps this week to reduce costs for the purpose of Just Egg sales covering the company’s operating expenses sooner, and that means parting with some members of the team whom we will miss greatly,” a company spokesperson told Bloomberg via e-mail. The spokesperson declined to say what part of the company was affected.

Neither side of Eat Just’s business makes money, and the company recently has had trouble paying bills. It’s facing a US$100 million lawsuit from its bioreactor manufacturer, Bethlehem, Pennsylvania-based ABEC. A US$2.7 million suit from Kansas City, Missouri-based Clark, Richardson & Biskup Consulting Engineers for work on cultivated meat was dismissed this month. The company spokesperson declined to comment on either matter.

In February, Alameda, California-based Eat Just laid off about 18 per cent of employees. It raised US$16 million earlier this month from the non-profit Ahimsa Foundation. BLOOMBERG