Chicago, IL—RXBar has laid off 40 employees, or around 20% of its workforce, according to Chicago Business.
RXBar was founded by Peter Rahal in 2013, grew to 75 workers, and was bought by Kellogg for $600 million in 2017, WholeFoods previously reported, after which, Chicago Business reports, it grew to more than 200 people. Just a few days ago, RXBar announced on Twitter that they had begun selling their products in the UK.
This spring, Chicago Business says, it became the only tenant of a new nine-story building in Chicago.
An RXBar spokeswoman told Chicago Business, “We are proactively engaging in a reorganization to better support our business objectives in 2019 and beyond. The brand is extremely healthy. Nielsen data shows that our retail sales have more than doubled this year.” She declined to provide the company’s overall headcount.
Reactions on Twitter range from anger that Kellogg would time the layoffs for just before Christmas, to an absolute lack of surprise, as layoffs often follow acquisitions.
In October, Chicago Business points out, Kellogg reported that its third-quarter operating profit had decreased 2.6%, putting it below analysts’ expectations. It reduced its full-year forecast and now expects flat results, rather than the 5-7% growth it previously anticipated.