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COSTA RICA |
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Amway Could Move Hundreds Of Jobs to
Costa Rica
Amway Corp. is said to be ready to move what
could be hundreds of local jobs to Costa
Rica as part of a sweeping streamlining of
its global operations, according to a
confidential memo obtained by The Press. The
Ada-based direct seller on Oct. 5 told
employees it was moving finance functions
currently handled locally to a new
"enterprise process centre" in Costa Rica.
Other centres are planned for central Europe
and Asia that will affect operations in
those regions.
"This move will have a substantial impact on
current finance positions in North America,
Latin America and Europe, though specific
impact and numbers will not be clear for six
to eight weeks," a fact sheet provided to
employees said.
The idea behind the centres appears to focus
on consolidating many back-of-house
functions to low-cost labor markets.
The company bills the centre as a way of
standardizing processes, meeting needs with
greater consistency and becoming more
efficient. Transition to the new center in
Costa Rica will begin in the second quarter
of 2010.
The exact number of jobs that will be lost
among Amway's more than 4,000-person local
workforce won't be determined for several
more weeks, said Rob Zeiger, a company
spokesman.
"We've learned from watching other companies
in Michigan and elsewhere that putting off
difficult analysis can really come back to
hurt everyone deeply in the long run," he
said.
A letter to employees from Chairman Steve
Van Andel and President Doug DeVos said
Amway is "taking proactive steps to
determine what operating model will fit our
business today and into the future."
"Certainly, change is difficult and many of
these transitions are difficult to absorb
and understand," the letter reads.
While the moves may not be unusual for the
industry, they do run counter to Amway's
efforts to polish its brand in the United
States and statements by its leaders about
their commitment to the local work force.
The company, privately-held by the families
of co-founders Rich DeVos and the late Jay
Van Andel, reported record sales of us$8.2
billion in 2008 with executives proudly
proclaiming the company was profitable and
on solid financial footing. |
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