ADA, MI – Direct sales giant Amway announced Thursday that it plans to cut 900 positions, 90% of which are based at the company’s global headquarters in Ada, as part of a restructuring plan focusing on nutrition science, innovation and manufacturing.
The private company, founded by the late Rich DeVos and Jay Van Andel, says the “massive investment” needed to strengthen these areas comes amid “modest growth financial realities coupled with operating margin pressures”. That investment includes injecting $ 52 million into Amway’s manufacturing capabilities in Ada over the next five years, according to company spokeswoman Cindy Droog.
“It is a difficult business reality that this kind of change does not happen without affecting people – people we love deeply and who passionately believe in what we do to support entrepreneurs around the world,” said Milind Plant CEO in a statement.
Amway, founded in 1959, has about 13,000 employees worldwide and about 3,000 in Ada. The company sells Nutrilite nutritional supplements, Artistry cosmetics, home care products like soaps and durable products like individual water treatment systems. and air, through approximately 3 million distributors.
The company says it is offering a voluntary termination plan, the terms of which have not been released, to eligible employees.
“It is our hope to achieve as much as we can through voluntary departures, and we will offer generous terms that align with our values, treating all employees with openness, dignity and respect,” the company said in a statement.
Droog said the jobs being eliminated are not manufacturing, “professional jobs”.
Amway has cut at least 210 jobs in Michigan since May 2019.
With 90% of Amway’s planned job cuts taking place in Ada, the remaining 10% will occur at the company’s Amena site in Buena Park, California. The company employs about 500 people in California.
The company says it expects most job cuts to occur between July – starting with executives – and the end of the year. “A small number of employees will be asked to stay longer to avoid business disruption,” said Amway.
In addition to the cuts, Amway plans to refit its Ada manufacturing facilities, renaming part of them as a “Nutrition Manufacturing Center”. The move will bring 125 additional industrial jobs to Ada in the next two to three years.
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