Oatly Group AB cut its sales outlook and announced an improvement plan in Asia as consumers in the region moved away from its drinks post-Covid.

The oat-drink maker now expects full-year revenue growth in a range of 7% to 12% on a constant-currency basis, down from 23% to 28% previously.

Shares plummeted as much as 29% in New York trading, the most since it began trading in May 2021.

The plan, modeled on similar strategies in Europe, the Middle East and Africa and in the Americas, is intended to strengthen the business and then lead to growth. It includes a simplification of the portfolio of products and reduced operating costs.

“As Asia has transitioned to a post-pandemic era, consumers have behaved differently than we had originally expected and we need to adjust,” Oatly Chief Executive Officer Jean-Christophe Flatin said in a statement, adding that the company has further simplified corporate functions and overhead in the Americas.

The company made “significant” investments in new products, distribution, promotions and advertising based on its predictions of a “large post-pandemic tailwind” that “has not materialized,” Chief Operating Officer Daniel Ordoñez said on the investor call.

The Malmö, Sweden-based company expects cost savings of about $85 million in 2024. While those savings will focus on having fewer project-related expenses and less spending on outside consulting, some jobs will be eliminated and others roles will not be filled, Flatin said on the investor call. The changes in Asia could also result in an impairment charge, which might include severance and other costs, of a size yet to be determined.

Oatly reported second-quarter revenue that missed analysts’ estimates.

(Updates with shares in third paragraph, comments from investor call throughout.)