Tahitian Noni restructures, trims 130 jobs in Provo

Laid-off workers given severance packages

Published: Friday, May 26 2006 12:00 a.m. MDT

Utah Gov. Jon Huntsman, left, looks over a map of the Pacific islands with Tahitian Noni International President Kelly Olsen during an open house at the company's headquarters in Provo on June 24, 2005.

Jason Olson, Deseret Morning News

Tahitian Noni International said Thursday it has cut 130 jobs from its Provo roster as part of a restructuring plan, which the company says will get products and services closer to people in its expanding markets.

The company, which taps the noni plant to make drinks and beauty, weight management and nutritional products, said the restructuring plan was effective Thursday and affected employees have been informed.

Tahitian Noni employs about 1,600 people worldwide, including 846 at its Provo headquarters. All 130 cuts were at its home facility, and duties will be shifted to existing staff in the field or handled via technology, according to Tahitian Noni Vice President Shon Whitney.

The jobs, which spanned several departments at Tahitian Noni, were mostly in global support. Affected workers were given severance packages, extensions on health benefits, recommendations and placement assistance, Whitney said.

"Companies from time to time will move from a more central model to a more regionalized model," Whitney said. "We've been in a more centralized model but have found as we've continued to grow and expand that we need a different model."

Historically, Tahitian Noni's international support has been handled from Utah, Whitney said. By putting the products and support in the hands of people on the ground in the company's various markets, Tahitian Noni will reduce redundancies and better ensure that "local markets have staff available to grow the business and offer better services to customers," the company stated.

Tahitian Noni, founded in 1995, is now in 73 markets, Whitney said, from Japan and Taiwan to Los Angeles and Houston. The company operates manufacturing facilities in the United States, Tahiti, Japan and China.

In 2005, Tahitian Noni had more than $530 million in revenue worldwide. Last week, the privately held company reported record sales in the first quarter of 2006.

"We just finished the largest quarter in company history, with growth in the U.S. of over 20 percent," Whitney said. "This (restructuring) really is a move to focus more resources on our key markets around the world, including the U.S."


E-mail: jnii@desnews.com

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