ADA, Michigan — Thursday, Amway announced six percent of its total workforce will be cut, mostly from the company's headquarters in Ada.
Amway said 15,000 people globally and 900 within the U.S. will be out of job following this announcement. 3,000 people are employed at the Amway headquarters in Ada and 90 percent of the 900 jobs being cut are at the headquarters in West Michigan.
Local small businesses are set to feel the impact of the layoffs as well. Dr. Paul Isely, associate dean of GVSU's Seidman College of Business, estimates that for every job lost from Amway, another will be lost somewhere else in Kent County.
"The people working in these jobs spend money," says Isely. "Getting haircuts, buying food, to go out to eat, to buy things. So that money is no longer stirring around the West Michigan economy."
U. Turan, owner of Zeytin Turkish Restaurant in Ada, says he gets a lot of business from Amway employees.
"Most of our lunch business is all Amway," says Turan. "Having them losing such a large number, it's going to immediately effect us."
Amway cited a restructuring and organization plan in the works for the past seven months and the ongoing coronavirus pandemic as the reasons for the decision.
"All of this has accelerated our need for organizational change. This is, by far, the most deeply felt, painful and difficult part to do as we move forward with our strategic priorities, " the memo to employees said.
Turan says he believes Amway will hire those jobs back eventually, and Dr. Isely agrees it is a possibility.
"Over the next year will be painful, but as we look at the medium term effect, if their business plan plays out, it could actually lead to growth," says Isely.
The multi-level marketing company said it decided to offer a voluntary separation plan to eligible employees.
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