After reporting poor third-quarter earnings, Provo-based multilevel marketing and wellness company Nu Skin laid off more employees on Monday.
A company spokesperson confirmed the cuts Monday night but did not disclose how many people were impacted.
“Yes, a reduction did take place today, but we are not disclosing the number of people impacted,” a spokesperson replied when asked about the layoffs.
The layoffs were foretold last year in quarterly and annual reports.
A phased “workforce reduction” was announced at the end of 2023 in financial disclosures as part of a plan “to focus resources on the Company’s global priorities and optimize future growth and profitability.”
A quarterly report filed on Nov. 8 said Nu Skin plans to “substantially complete” the workforce reduction program by the end of 2024. It did not say how many staff were cut in this last round.
Nu Skin laid off roughly 5% of its staff last December after “softer than expected” third-quarter financial results. CEO Ryan Napierski said in a Nov. 7 news release that the company “achieved results within our previous guidance range” despite “macroeconomic pressures and challenges within the direct selling industry.”
In the third quarter of 2024, revenues dropped another 13.8% year-over-year to $430.1 million, according to Nu Skin. The company also lost 15% of its customer base and 20% of its paid affiliates, according to the most recent report.
Workforce reductions in the last year did save the company $15 million in “general and administrative” expenses, Chief Financial Officer James Thomas said in a news release. The company anticipates saving $45-65 million by the end of the year, Thomas said.
“As part of our cost-efficiency program, during the quarter we saved an additional $15 million in general and administrative expense and remain on track to meet the high end of our range of $45 to $65 million for 2024,” said Chief Financial Officer James D. Thomas said in the news release “During the quarter, we generated $31.4 million in cash from operations, reduced inventory levels $43 million year over year and paid down debt to further strengthen our balance sheet.”
The company says it expects to earn roughly $1.7 billion in 2024 — less than initially forecast.
“Given ongoing pressures in the core Nu Skin business, we are adjusting our 2024 outlook,” Thomas said.
This story is breaking and will be updated.
Shannon Sollitt is a Report for America corps member covering business accountability and sustainability for The Salt Lake Tribune. Your donation to match our RFA grant helps keep her writing stories like this one; please consider making a tax-deductible gift of any amount today by clicking here.
