OpTree

Tahitian Noni is the latest casualty of the current economic crisis. The company announced that they will have to cut 85 jobs from various departments within the company.

Aside from being pretty shocked by this news, we actually wonder if it is actually worse than we may be lead to believe. John Wadsworth, co-creator of the company, and its President made the announcement this past week. Wadsworth recently began revamping the company’s business model as well as cutting costs to ensure the company will survive the tough economic climate. Revamping the business model???

Wadsworth took over as President of the company in July, after taking a 3 year break to serve as mission president for the Church of Jesus Christ of Latter Day Saints. Wadsworth replaced Kelly Olsen, who is now focusing on Noni product strategy and expansion.

The 85 workers cut were from all areas of the company including training, marketing, operations, warehousing and even executive management. The cuts represent about 7 percent of the company’s workforce. Those who were laid off were given severance packages based on the length of time they served the company as well as outplacement support and an extra month of health insurance.

Along with the cutting of jobs, Noni is restructuring the company to put more of an emphasis back on the direct selling business model, and focus less on retail sales in their various lifestyle centers and cafes. Tahitian Noni feels that the direct sales business model is more effective and brings the company the most revenue. The retail sales failed to produce the kind of returns the company expected that it would.

“Restructuring always hurts,” said Wadsworth, “but we also have to look at where the company is today, where the economy is today and what’s the best course to stay strong and stable.”

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