Impossible Foods, the plant-based artificial meat company, plans to lay off 6% of its employees as part of restructuring efforts under new CEO Peter McGuinness. The layoffs are expected to impact 121 jobs.

News of the pending job cuts was first reported by FoodNavigator-USA, based on an email sent to Impossible Foods staff. McGuinness took over as CEO in April.

According to the email, McGuinness stated the company is “well-capitalized” with a “strong balance sheet” but “we still need to prioritize the projects and initiatives that will best fuel our business and mission as we prepare for the next phase of growth.”

Impossible Foods is headquartered in Redwood City, California. It has seen stiff competition from other plant-based meat alternative companies, such as Beyond Meat and Maple Leaf Foods. Impossible’s last round of job cuts occurred in January, when it cut 15 jobs amid earlier reorganization, according to the Silicon Valley Business Journal.

Impossible Foods recommitted to its Redwood City location last year, signing a 164K SF lease at 1500 Seaport Blvd. in 2021, while also pledging to keep its location at 400 Saginaw Drive.

Plant-based meat alternatives have seen a massive boom in demand in the past two years. Plant Power Fast Food, a San Diego-based fast-food chain completed a $7.5M Series A rounding of financing last year, which it used to expand its restaurant footprint.

However, there have been signs of demand slowdown. The Silicon Valley Business Journal also reported that Impossible competitor Beyond Meat has experienced a 75% dip in shares this year amid slumping sales.