Amway cutting jobs
Amway is eliminating certain jobs in its information technology division and transitioning those functions to vendors.
The 47 layoffs, which the Ada-based direct selling company confirmed to the Business Journal today, represent the third wave of cuts since December 2018 as part of the company’s plan to “align all of its resources to meet business priorities,” according to Amway spokeswoman Anna Bryce.
Amway also announced an undisclosed number of cuts to “back-office positions” globally in April, and in December, it cut 45 “management-level positions” across several departments.
Bryce said the latest layoffs will affect employees in the U.S. “and in other markets.”
“Most of those whose roles have been eliminated will remain with the company for a period of time to help implement a successful transition to a new way of working, which includes use of two global vendors for highly standardized work,” Bryce said.
She added the changes “are necessary for the future” of Amway business owners and the company’s business, and “additional local job impacts” will happen throughout 2020.
Bryce said Amway is offering severance pay, continued health insurance, career transition services and counseling services to affected employees.
Amway currently has more than 16,000 employees globally, including 3,000 in West Michigan as of this month.
The IT division is currently one of the largest in Amway’s global infrastructure.
The company reported $8.8 billion in sales for the year ending Dec. 31, 2018, an increase from $8.6 billion in 2017.
Amway had seen several consecutive years of sales declines since 2013, when it reached an all-time high of $11.8 billion in revenue. Sales were at $10.8 billion at the end of 2014, $9.5 billion in 2015 and $8.8 billion in 2016.
The company’s annual sales figure includes revenue from direct-selling operations and other business holdings.
Amway has several brands: Nutrilite vitamin, mineral and dietary supplements; Artistry skin care and color cosmetics; eSpring water treatment systems; and XS energy drinks — all sold exclusively by Amway independent business owners.