Amway to Cut 10% of Jobs; 65 Layoffs Set for O.C.
Amway Corp. plans to trim 10% of its U.S. work force, including laying off 65 employees in Orange County, to cope with fallout from the Asian economic crisis, the company announced Friday in Ada, Mich.
Amway told 250 employees Wednesday and Thursday that their jobs were going to be eliminated.
For the record:
12:00 a.m. Dec. 23, 1998 For the Record
Los Angeles Times Wednesday December 23, 1998 Home Edition Business Part C Page 3 Financial Desk 1 inches; 21 words Type of Material: Correction
Amway jobs--Amway Corp. is eliminating 250 jobs nationwide, including 65 in Orange County. The move was incorrectly described in a Nov. 21 report.
Another 292 U.S. employees of the direct sales company already have elected to take early retirement.
“The company needs to do this to protect as many jobs as possible overall,” Amway computer specialist Bob Hilliker, who has decided to take early retirement, told The Grand Rapids Press. “It’s business.”
The job cuts affect 180 employees at Amway World Headquarters in western Michigan, the company said. At Amway’s Nutrilite division in Buena Park, 64 employees received layoff notices and another 45 accepted voluntary early retirement offers. The division, which manufactures vitamins and food supplements, will have 900 employees after the layoffs and buyouts.
At Amway’s service center in Santa Ana, one employee will be laid off and two have taken early retirement. The center will have 50 employees.
Layoffs also will occur at Amway operations in Lakeview, Calif.; Aurora, Colo., and Dayton, Nev.
“This was an especially difficult step for Amway to take because we’ve worked with many of these employees for so long,” Amway Chairman Steve Van Andel said in a statement.
Employees in Ada have been expecting the job cuts since September. As a result of economic troubles in Asia and a slow year at home, Amway’s sales for fiscal 1998 dropped 18.6% to $5.7 billion. It was the first decline in sales since 1984.
Employees who are losing their jobs will receive full wages through the end of the year. Effective Jan. 1, they will receive a severance package based on their position and years of service at Amway.
“We know this will be a difficult time for all of our valued employees and their families,” said Amway President Dick DeVos.
“For those leaving the company, we hope to ease this transition through enhanced benefits and special programs to help them move on to the next phase in their careers.”
Times staff writer Jonathan Gaw in Orange County contributed to this report.
