The company called the layoffs part of its “restructuring.”
(Francisco Kjolseth | The Salt Lake Tribune) Utah-based essential oil company doTERRA laid off about 300 employees Friday afternoon, according to a company spokesperson.
doTERRA, the Pleasant Grove-based wellness company known for its essential oils, has cut about 7% of its workforce, or just under 300 people, in what it calls a “reorganization,” a statement from the company said Friday afternoon. It was done.
A doTERRA spokesperson declined to say which positions were eliminated or how many employees lost their jobs in Utah. The company employs about 3,000 people at its headquarters in Pleasant Grove, according to its website. LinkedIn reports that more than 20 Utah-based employees have been laid off since Friday.
Employees were first notified in a mass email on Friday, according to multiple former employees who apparently posted screenshots of the emails online. The email was sent by Chris Farnsworth, vice president of human resources, “on behalf of” CEO Kirk Jowers, and revealed that doTERRA had begun “rightsizing” its U.S. workforce and that He said eligible employees will soon receive a separate email.
A doTERRA spokesperson did not confirm the authenticity of the screenshot, but several versions of the screenshot have been shared on Instagram, LinkedIn, and Reddit.
Employees were offered severance packages and extended medical benefits, according to a company statement and email screenshots.
“These difficult decisions are critical to streamlining our operations and continuing to deliver high-quality products that meet the needs of wellness advocates and customers around the world,” the statement said.
The layoffs come as a result of a change in management at doTERRA, which bills itself as the “world leader” in essential oils. Jowers was appointed CEO in February, along with new president Murray Smith, the company said in a statement. According to the announcement, former CEO and founding executive Corey Lindley will retire at the end of 2023, and former president and founding executive Emily Wright will become chairman of the board.
“I am truly honored to have been asked to serve in this role serving doTERRA’s incredible health champions,” Jowers said in a news release announcing his appointment. “I am committed to building on the foundation laid by our founders and continuing doTERRA’s vision, mission and purpose to change the world.”
doTERRA is one of Utah’s largest direct sales companies, according to a 2022 report from the University of Utah Kem C. Gardner Policy Institute. The company relies on brand representatives, or “health champions” in company parlance, to sell its products, primarily essential oils, to customers. Sellers also recruit other personnel into their sales organization and earn a portion of their sales. This business model is commonly known as multi-level marketing.
Wellness Champions are not formal company employees. The approximately 300 company employees affected by the “restructuring” included project managers, business analysts and marketing professionals, according to their LinkedIn profiles.
If you have been affected by doTERRA’s reorganization and would like to share more insights, please contact us via email. ssollitt@sltrib.com.
Shannon Sollitto is Report for America Business Accountability and Sustainability Officer of the Salt Lake Tribune. Your gift, matched by an RFA grant, will help her keep writing stories like this. Click to consider making a tax-deductible gift of any amount today. here.
