Meati Holdings Faces Turmoil Amid Restructuring and Layoffs

The alt meat company Meati Holdings, recently acquired by Yasir Abdul, faces significant challenges after announcing its Thornton, Colorado plant as “unprofitable and unsustainable.” Despite the company’s claims of being “poised for growth,” former employees have reacted angrily to the release, which notably omitted any mention of widespread layoffs.

Just three days prior to the press release, AgFunderNews reported that the company had laid off most of its staff as part of a strategic restructuring process aimed at stabilizing operations.

Leadership Changes and Criticism of Previous Management

In the release, Abdul, who leads the infomercial firm InvenTel, is described as a “visionary” and focuses on addressing the failures of Meati’s former leadership. The press statement criticized the prior executive team for not meeting revenue and margin goals, despite earlier reports of significant revenue growth and expansion.

“Unfortunately, when startups and founders build a brand, they often possess tunnel vision,” the statement read. “Meati is now poised for growth.” Abdul also hinted at exploring alternative distribution channels, including a direct-to-consumer model, leveraging existing retail relationships to broaden awareness and sales of Meati’s products.

The Impact of Layoffs on Staff

Multiple sources reported a chaotic atmosphere within the company leading up to the layoffs, including payroll irregularities exacerbated by financial difficulties. Following an anonymous termination letter received by several employees, the company confirmed staff reductions were necessary to stabilize operations due to financial constraints.

“I heard that only a few management positions will remain, but all our food and fermentation workers were let go,” shared a former employee, highlighting the significant downsizing of the workforce that initially numbered 150 at the start of the year. Another employee remarked on the bizarre nature of the press release, stating, “It’s absurd and likely exists to soothe Yasir’s ego.” Both current and former employees expressed frustration over the lack of transparency and ongoing financial instability.

A Shifting Vision: From Ambition to Reality

Founded in 2015 as Emergy, Meati creates mycelium-based meat alternatives through submerged fermentation. The company raised over $450 million from prominent investors, including Grosvenor Food & AgTech and Prelude Ventures. However, over time, leadership changes came with their share of challenges. Former CEO Scott Tassani was replaced following an ambitious projection that Meati would achieve $1 billion in sales within five years. His successor, Phil Graves, acknowledged that such goals were “overly exuberant.”

Graves stated in a past interview with AgFunderNews, “We had brought in many talented individuals, but ultimately we were overstaffed and very siloed. Instead of acting like a small startup, we were functioning like a major CPG.” Following a financial covenant breach in February 2025, the company entered a critical phase that led to further financial turmoil.

The Path Forward: Potential for Recovery?

On May 2, after ongoing financial issues, Meati issued an Assignment for the Benefit of Creditors agreement, allowing for the sale of assets amid bankruptcy concerns. Abdul purchased Meati for a reported $4 million, but insiders have indicated this figure might not reflect the true value.

As Meati navigates these turbulent waters, the disconnect between the public narrative and employee experiences raises questions about the company’s future. Will the new leadership manage to stabilize and eventually thrive, or is this merely an optimistic facade masking deeper structural issues? Only time will tell.

Further Reading

• Exclusive: Mass layoffs at Meati after weeks of payroll glitches
• Exclusive: Meati in trouble again as firm misses payroll. ‘People are in group chats begging for answers’
• Infomercial exec Yasir Abdul emerges as prospective buyer for Meati as firm navigates ABC process
• Breaking: Meati plans “gut-wrenching” mass layoffs amid “bank-induced crisis”
• Meati expands distribution, anticipates positive gross margins by the year end, says CEO