Twenty-three people were laid off from their jobs at Profile by Sanford Health corporate offices last week due to lost sales from the coronavirus pandemic, officials confirmed Friday.
The layoffs, which included about half of the original team of 55, come at the same time a dozen stores closed across the country. There are about 100 store locations remaining, which act as storefronts and coaching spaces to teach clients the Profile program and lifestyle changes, said CEO of Profile Nate Malloy.
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“As part of the decision, which was a difficult decision to make, we had to think about how we realign the corporate support structure to meet the needs of the system as a whole,” Malloy told the Argus Leader. “As we reduce store locations we need to reduce the number of corporate people in our office.”
Malloy said the layoffs are a consequence of the past 18 months and the stress the pandemic put on markets across the country where Profile isn’t as well known and used as in the Midwest. Most shuttered locations aren’t in the Midwest, but in cities like Raleigh, North Carolina or Austin, Texas, Malloy said.
The Midwest, especially Sioux Falls and Fargo markets, “continue to do well and grow,” Malloy said, adding that sales in such markets are up over 30% pre-pandemic.
As for the employees laid off from Profile, Sanford’s Human Resources Department is actively looking to find displaced employees other jobs available within the company, Malloy said. Sanford’s policy dictates that laid off employees don’t receive severance pay if they are hired within another department within the company.
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“Hopefully they’ll find a place within the organization. I know they’re going to do great things,” Malloy said. “… We’ve had to make some tough decisions, but we’ve made them with the intent of strengthening the operating model of our business so we can continue to create life-changing impacts for our members across the country.”