USANA Health Sciences is laying off scores of employees after reporting millions in losses in its most recent fiscal quarter.
The direct-selling company — the industry term for multilevel marketing — is based in Salt Lake City and produces nutritional supplements, healthy foods and personal care products sold around the world.
It reported net sales of $214 million on Wednesday with an overall net loss of $6.5 million.
Third-quarter operations were “below expectations,” CEO Jim Brown said in a statement when the company released preliminary results earlier this month.
Brown attributed that to “softer-than-expected” sales and the rollout of an enhanced compensation plan for its brand partners — the company’s term for independent contractors who sell USANA products.
The company also reported a decline in active direct-selling customers, or people who have purchased USANA products within the past three months.
USANA’s products are most popular in China, where the company made 50% of its sales, based on the most recent investor presentation. Other parts of Asia account for a combined 24%, and the remaining 26% of sales were in the Americas and Europe.
These layoffs come close to two years after the company’s sponsorship of the USANA Amphitheatre in West Valley City ended, with it renamed the Utah First Credit Union Amphitheatre.
USANA is working to strengthen its business, according to a company statement, including “right-sizing its operations to align with current sales levels.”
That includes a workforce reduction of about 10% of USANA’s employee headcount across its offices in several countries, the company’s emailed statement said.
Based on posts on LinkedIn, the company eliminated positions in employee relations, communications and related departments.
Most posts were by former USANA employees lamenting their friends and former colleagues losing their jobs and encouraging companies with open positions to hire people who were part of the workforce reduction.
USANA has 1,700 full-time employees, according to an investor overview presentation updated earlier this year.
In 2020, the company employed between 520 and 1,048 people in Utah, according to a report from the Kem C. Gardner Policy Institute on direct-selling companies.
USANA didn’t specify how many employees laid off as part of its workforce reduction were based in Utah.
The company operates in 25 markets in total, according to the recent investor presentation, and about 82% of its sales are outside the U.S., even though employment is concentrated here.
USANA doesn’t have debt, based on its report, but its savings have dwindled in recent years.
In its emailed statement, USANA indicated it will support affected employees and that the company “remains confident in its long-term strategy and future growth.”
Megan Banta is The Salt Lake Tribune’s data enterprise reporter, a philanthropically supported position. The Tribune retains control over all editorial decisions.