Scott G. Winterton, Dnews
LEHI — Nutritional supplement manufacturer XanGo is cutting about 20 percent of its global workforce.
The company announced Monday that the layoffs would impact various segments across the board, but would not disclose the actual number of employees affected or the number of employees in its total worldwide workforce.
Dave Webb, XanGo's vice president of communications, said the cuts were not “performance-based,” but rather strategically motivated. The company is looking for “the best return on investments and allocation of resources” to help it prosper over the long haul, he said.
“We're basically focusing on the core competencies that will give us strength as we look at our future,” Webb said.
A company statement read, “XanGo has made some changes to its internal operations in order to better position the company for today’s economy and to focus its resources on its most important initiatives. This is part of a long-term strategy to ensure the company is nimble and best able to support its strategic goals and quickly seize developing opportunities with full commitment.”
Webb said the company will launch a new anti-aging product line at its international convention in September in Salt Lake City.
“We look forward to unveiling our latest life-changing product, enhancements to our business compensation and additional initiatives to continue attracting the next generation of direct sellers. XanGo is boldly moving toward an exciting future,” the statement said.
Founded in 2002, XanGo is a privately owned international multilevel marketing company headquartered in Lehi. The company markets and distributes a blended juice product consisting of mangosteen and other juices, along with skin care, personal care, energy supplement and nutritional supplement products. It has more than 2 million distributors in more than 40 countries worldwide and reportedly has topped $2 billion in revenue.
In 2006, XanGo made history when it struck a multimillion-dollar sponsorship deal with Real Salt Lake to display the company's name on the front of the team's jersey — the first agreement of its kind for a major American sports league. The latest extension on the deal ends this year.
Over the years, however, the company has been the subject of lawsuits claiming that founders spent millions of dollars in company money for luxury items, including exotic vacations, country club memberships and chartered jets.
Most recently, XanGo co-founder Bryan Davis, who in May accused his partners of corporate looting in a federal lawsuit, became the subject of a complaint in state court seeking his ouster from the company.
The lawsuits are still pending, though Webb said they "had no bearing on the actions of this week.”
As for the immediate future of the company, he said this latest maneuver should allow the company to move ahead more confidently.
“We are building this specific focus so that as the company grows with existing products and this new product, we will have some great news to report in the coming months,” Webb said.
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