For decades, Utah has been recognized as an important hub for multi-level marketing (MLM) companies. The US state is home to a disproportionate number of businesses of this type, with large companies headquartered in the region. They have taken advantage of the local culture that is very favorable to this type of business, due to the networking power of these communities, to grow globally.
But a recent move by dōTERRA, a giant in the essential oils market, affected dozens of Brazilian employees, some of them from Paraná, and caused surprise in the multi-level industry. The company announced the linear layoff of 7% of its workforce, contradicting its policy of only terminating contracts for just cause.
Since the opening of the Brazilian market until recently, executive Paulo Bangerter has led the expansion of the US MLM industry in Brazil. Initially, dōTERRA’s Portuguese-language call center was created in Utah. Later, the manager of the American call center, André Sá Maia, was transferred to Brazil and implemented another service channel, aimed at Brazilian customers.
The report found that the opening of this unit in the country caused great concern among Brazilian employees in Utah, who were afraid of being fired. However, CEO David Stirling had promised that they would not run this risk, which the company failed to keep in May of this year, when the first mass layoff took place. The remaining 30 or so Brazilian employees who remained in the call center of the North American unit were permanently laid off in August of this year.
Some of these professionals are from Paraná and told the report that the treatment given to them was “shameful and humiliating”, having been fired as a group via video conference by the company’s vice president. In addition, the Brazilians said that there were cases in which some of them, including elderly people, were “escorted” by security guards from the time they collected their personal belongings to when they went to their vehicles.
Mormon Church Connection
One of the most significant cultural influences in Utah is the Mormon Church (LDS). It is easy to see a strong connection between the principles espoused by the congregation and the core values promoted by multi-level marketing (MLM) companies. The emphasis on community and entrepreneurship within the Mormon faith aligns well with the multi-level marketing business model, which often relies on personal networking and word-of-mouth sales. The large number of missionaries spread throughout the world speaking foreign languages facilitates global expansion.
The presence of members of the Mormon Church is notable, especially in management positions at dōTERRA. All the executives mentioned in this article are members of the faith. Founding partner and former CEO David Stirling is in ecclesiastical service for the Church in Armenia.
Photo: Michael Provard/Temples of The Church of Jesus Christ of Latter-day Saints.
“Suddenly, in a few minutes, we were fired”
Marcos Toniolo, from Curitiba, was one of the dōTERRA employees who was fired from the call center of the company’s North American unit in Utah, where he lives. He told Paraná Norte that he worked at the multi-level marketing (MML) giant from November 2020 to May of this year.
According to Toniolo, the company’s decision to open a call center in Brazil did not concern the employees at the North American unit. “When it opened in Brazil, it eased our workload because we had few agents for a growing demand,” he said. He reported that the company had committed to not firing the Brazilians in Utah but informed them that no more agents would be hired for the Brazilian market.
The Paraná native said that the employees were taken by surprise because they had not received prior notice. “In Brazil, you can’t fire someone without prior notice. I don’t know the labor laws here in the United States. So, without warning, we were working and suddenly, within a few minutes, we were ordered to stop our activities, and we were fired. Here it is called layoff, that is, mass dismissal.”
Former employee suggests investigation by the Public Prosecutor’s Office
A former dōTERRA employee contacted Paraná Norte to talk about the mass layoff of Brazilian employees at the North American unit in Utah. His wife was one of those laid off. He is from Londrina and worked from 2019 to 2021 on the information team, responsible for feeding a database for operations in the Brazilian market. He asked that his name be protected in the report.
“In Brazil, they say that ‘what was agreed upon is not expensive’. There is no justification for the dismissal without just cause and the termination of the Utah teams, since the preservation of jobs was ensured when the call center was opened in Brazil,” he said, suggesting that there be an investigation by the Public Prosecutor’s Office of Labor “and other institutions that can protect Brazilians abroad.”
If you have been affected by dōTERRA’s layoffs, and have more information to share, please email us at redacao@jornalparananorte.com.
Company says nine Brazilians were laid off
Through its press office, dōTERRA issued a statement regarding the layoffs of Brazilians at the company headquartered in Utah, United States. According to the statement, the recent layoffs affected nine Brazilians.
“This process was conducted to minimize the impact on teams and in full compliance with current labor laws in the United States. Severance packages, career transition services and access to resources were also offered to facilitate new job opportunities for affected employees”, says the company, justifying that the layoffs occurred after an administrative analysis of its global customer service operations, with the decision to centralize support for the Brazilian market in the call center located in Brazil.
“This decision was the result of a structural need for localized service in the country, to offer a more dedicated service to members and customers in Brazil and also in other regions of Latin America”, states the statement.
Regarding the security guards “escort” dismissed employees, the company says that during the termination process, employees are accompanied on their way out by members of the Human Resources department and the company’s security team, given that the access badge is returned to the company, as it provides access to restricted areas of the building, including doors and elevators. “The purpose of the security guard’s accompaniment is to enable employees to access the exits and also to provide support in transporting their belongings, especially when there are larger volumes”. The note emphasizes that the company “strictly adopts the best human resources practices, with a focus on respect and dignity in all of our global operations. (…) We are unaware of the occurrence of the reports mentioned in the report, but we take these issues very seriously, which is why we are conducting an internal investigation and, if any irregularities are found, we will take the appropriate measures.”
From the Newsroom
Photo: dōTERRA
