Food Dive reported the development on 2026-04-21. Simply Good Foods, which also makes Atkins weight-loss shakes, has struggled amid a surge in competition and rising GLP-1 use.
The report places the news in a wider commercial context. Simply Good Foods said it will lay off 15% of its workforce and restructure corporate leadership. CEO Joseph Scalzo, who returned to the Quest protein bars and Atkins weight-loss shake maker in January, said he is acting "with urgency" to turn around declining sales.
For the food sector, the practical implications extend beyond the immediate announcement. Scalzo said the reorganization is necessary "to advance performance across our portfolio and generate greater value for our shareholders.” Earlier this month, Simply Good lowered its outlook for the year and now expects up to a 10% decline in sales.
Attention now turns to how companies, customers and regulators respond. Simply Good has struggled as Atkins weight-loss shakes lose momentum in the backdrop of rising GLP-1 use. Losses at Atkins have been compounded by issues with the recently acquired plant-based protein shake brand Owyn. Even its best-performing brand, Quest, is experiencing challenges.
Food Dive
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