The bad news about the economy keeps getting worse, and although generally a slump in the economy creates somewhat of a boom within the Direct Sales Industry, several companies have taken a hit during the past few months. One of those company’s, Arbonne International has just announced that they were forced to lay off 95 workers from one of its largest facilities.
The California based skin care company told the employees that unfortunately there was not enough business and not enough work to keep everyone busy and employed.
A statement from a corporate representative stated, “We have made all reasonable efforts to treat the departing employees fairly, and wish them well.” The representative went on to say that although the Arbonne business remains strong, they felt it was in the company’s best interests to consolidate their workforce.
Employees, who were understandably upset with frustrated with not only the timing of the decision but also the fact that they say the received no warning from the company that there were problems. The company said that workers who were laid off will receive severance and other benefits.
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It’s not just the economy for Arbonne. From January 2007 to November 2008 (22 months), Arbonne has gone from 63,000+ consultants to 23,000+ consultants (per the Arbonne demographic map and information which can be viewed when logged in as a consultant).
Even before the recession was in full force, there has been huge attrition of consultants. At this time, the consultant count should be growing as more people look to direct selling to supplement income not falling off a cliff for the rep count as is currently the case. It appears reps are ‘retiring’ from Arbonne as they find out the business model and ability to make money is no viable. Arbonne had its growth in 2005 and 2006 and now the company and model are imploding. Sad.
Comment by Cindy — December 16, 2008 @ 6:24 am
For the first time in the history of direct selling we are seeing the economy effect many companies. I commend Arbonne for making this tough decision at the early stages of this downturn rather than after they were in the situation of others who have filed Bankruptcy.
At the Direct Selling Women’s Alliance we support a program called BID (Buy It Direct). If, through the BID program, we inspired 50% of direct sellers to purchase $100 more per month through a direct selling channel, in one year we will increase direct selling revenues in the United States by 7.2 billion dollars!
Assuming approximately half of those revenues are paid to distributors through commissions and overrides, bid will put more than 3.6 billion dollars into the pockets of direct sellers in the United States in one year alone.
It is our hope that all direct sellers will support one another and not look at others as competition. We are all in the same profession and can make a difference for each other.
Sincerely,
Nicki Keohohou, CEO
Direct Selling Women’s Alliance
Comment by Nicki Keohohou — December 16, 2008 @ 9:44 am
I WOULD LIKE TO LET THE CEO OF THE COMPANY KNOW THAT YOU NEEDED TO LET THE WORKERS WHO HAVE PUT IN TWO YEARS KNOW THAT THEY ARE GOING TO LAY OF IN ADVANCE SO THAT WE CAN GO LOOKING OUT FOR JOBS,BUT NOBODY WAS INFORMED,A CERTAIN BATCH WAS CALLED AND TOLD TO GO.THE BEST PART OF THE STORY IS THAT THE BEST HARD WORKING WORK FORCE WAS VERY SELECTIVELY CALLED AND TOLD TO LEAVE AND ? IS STILL THERE,96 WORK FORCE WAS TOLD TO LEAVE,AND THERE ARE HAVING OVER TIME FROM 5 A.M. TO 6.30 P.M. NONSTOP.THE SECOND THING IS HOW COME THE LOWEEST
Comment by RAHUL WALIA — January 14, 2009 @ 2:25 pm
NO COMPANY BEHAVES THE WAY YOU GUYS BEHAVE JUST CALLED WORK FORCE IN BATCHES AND TOLD THEM TO LEAVE.THE BEST PART OF THE STORY IS ALL THE HARD WORKING WORKER WERE LAY OFF,ALL 96 VERY GOOD WORKERS SOME OF THEM WERE ABOUT TO BE PROMOTED,BUT HEAR I HAVE SEEN THAT THE BOSSES WANTED THEIR OWN PEOPLE AROUND THEM, MY REQUEST IS JUST KEEP A CHECK BEFORE ITS TOOOOO LATE.
Comment by ROBIN — January 14, 2009 @ 2:49 pm