Amway announces 900 layoffs as part of restructuring plan

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Milind Pant Courtesy Amway

Amway said Thursday that it is laying off up to 900 employees in Ada and California as part of its global restructuring.

The Ada-based direct selling company shared the news after informing employees in an internal memo.

Amway said the workforce reduction will be carried out via a voluntary separation plan offered to eligible employees, most of whom work in Ada, between now and the end of 2021, though some employees will stay on into 2022.

“We announced to U.S. employees that as we invest even more in nutrition science, innovation and manufacturing, and in delivering seamless social, shopping and customer experiences to help our Amway business owners around the world grow and thrive, we will also be restructuring our operations,” the company said. “This restructure includes the reduction of up to 900 roles in Ada and Buena Park, (California). It is our hope to achieve as much of this as we can through voluntary departures, and we will offer generous terms that align to our values, treating all employees with openness, dignity and respect.”

Amway currently has 15,000 global employees, with nearly 3,000 based in Ada and just over 500 in California. The company said it expects most of the up to 900 departures will come out of the Ada-based professional workforce.

On the manufacturing side, Amway said during the next two to three years, it will bring roles to Ada from its Nutrilite Vitamins & Supplements tableting and packaging facilities in Buena Park, California, and make West Michigan its global center of nutrition manufacturing, as nutrition and wellness is the company’s fastest-growing segment.

Amway’s Ada manufacturing footprint will change in ways that “do not significantly reduce the number of manufacturing roles we have,” the company said, including combining its personal and skin care plants into one facility, exiting contract manufacturing and outsourcing of the minimal home care production.

Amway CEO Milind Pant declined to grant interviews but shared the following statement:

“Since Rich (DeVos) and Jay (Van Andel) founded Amway 60-plus years ago, we have been focused on helping people live better, healthier lives, and now we are investing even more in our wellness portfolio — in science, innovation, manufacturing — while also improving our digital capabilities,” Pant said.

“It is a difficult business reality that this kind of change doesn’t come without affecting people — people we love dearly who all passionately believe in what we do to support entrepreneurs all over the world.”

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