SALT LAKE CITY — Utah-based USANA Health Sciences, one of the state’s most prominent direct-selling companies, has announced layoffs affecting about 10% of its global workforce following a disappointing third-quarter performance and millions in reported losses.
The company, known for its nutritional supplements, health foods, and personal care products, reported $214 million in net sales and a net loss of $6.5 million for the quarter. USANA’s leadership described the results as “below expectations,” citing weaker-than-anticipated sales and adjustments to its brand partner compensation plan.
Softer Sales and Fewer Active Customers
CEO Jim Brown attributed the losses to “softer-than-expected” demand across several key markets and the financial impact of rolling out a new incentive structure for brand partners — independent sellers who make up the foundation of USANA’s business model.
The company also noted a decline in the number of active direct-selling customers, defined as individuals who have purchased products within the past three months.
According to investor data, China remains USANA’s largest market, accounting for roughly 50% of total sales, followed by other Asian countries contributing 24%. The remaining 26% of sales come from North America and Europe.
Layoffs Hit Multiple Departments
In an emailed statement, USANA confirmed it is “right-sizing its operations to align with current sales levels,” resulting in workforce reductions across departments such as employee relations, communications, and corporate operations.
The layoffs affect approximately 170 positions worldwide, based on the company’s total of 1,700 full-time employees. While USANA did not disclose how many Utah-based workers were impacted, LinkedIn posts from former staffers show that cuts extended across several U.S. offices.
“USANA is committed to supporting affected employees during this transition,” the company said, adding that it remains confident in its “long-term strategy and future growth.”
A Global Company Facing Shifting Market Conditions
USANA operates in 25 markets worldwide, but 82% of its sales come from outside the United States, even though much of its workforce remains headquartered in Utah.
The company emphasized that it still maintains a debt-free balance sheet, but its cash reserves have been shrinking in recent years as competition and global economic pressures intensify.
This latest restructuring comes nearly two years after USANA ended its sponsorship of the USANA Amphitheatre in West Valley City, which was later renamed the Utah First Credit Union Amphitheatre.
Industry and Economic Context
The layoffs come as several Utah-based multilevel marketing and manufacturing companies are adjusting to slower growth and higher operational costs. The direct-selling industry, long associated with Utah’s economy, has faced new challenges from changing consumer habits, stricter regulations abroad, and rising marketing expenses.
Financial analysts say USANA’s decision to trim its workforce is likely a short-term measure aimed at stabilizing earnings and preserving cash flow amid a competitive global health-supplement market.
Despite the cuts, CEO Brown maintained an optimistic tone about the company’s future, saying USANA is “taking deliberate steps to strengthen its business foundation and position itself for renewed growth in 2026 and beyond.”
