Scentsy Cuts 94 Jobs, Raises Sales Quotas in Desperate Push for Revenue
Scentsy just fired 94 workers and made it harder for its salespeople to earn commissions. The moves reveal a company in trouble.
On January 3rd, Scentsy laid off 94 employees at its distribution center in Coppell, Texas. The company filed a WARN notice on January 9th confirming the cuts. Coppell houses one of Scentsy's two major US product distribution hubs, though the company hasn't disclosed the facility's total headcount.
Sixteen days later, CEO Dan Orchard announced sweeping changes to how Scentsy compensates its army of independent consultants. The company is killing three product lines and rebranding its "pod" products under a single name: Scentsy Air.
The real shock came in the commission structure overhaul. Scentsy increased the monthly Personal Retail Volume requirement—the sales threshold consultants must hit to earn full commissions—from 200 to 250. The higher bar also applies to consultants who recruit through party-style marketing events.
The Monthly Sales Award Bonus, which boosts commission rates, now requires consultants to hit 2,500 PRV instead of 2,000.
Orchard didn't mince words about why. "Recently we've seen a decline in momentum, really across just about every direct selling company," he told consultants. "New customer acquisition, customer engagement, new consultant acquisition and new consultant engagement—given that this is currently not happening at a level that can sustain us today, we know that we need to make some changes."
His numbers told the real story: only 25% of Scentsy's consultants were active and qualified to earn commissions as of late 2024. Three-quarters of the company's sales force was essentially dead weight.
Scentsy did throw consultants one bone. Those who fail to hit 250 PRV monthly will still pocket 20% commission on their personal sales. That's better than before, when missing the quota once over any four-month rolling period meant getting labeled "inactive."
But the company eliminated the "Certified Consultant" rank, which previously let top sellers lock in a permanent 25% commission rate at 1,000 PRV with no time limit. Now everyone has to keep hitting monthly quotas or face account cancellation if they slip below 250 PRV for 12 months.
The math here favors Scentsy, not its consultants. Higher quotas mean fewer people qualify for commissions. Those who can't meet the new bar still place orders—they just earn less. Either way, Scentsy wins. It either captures more sales volume or pays out smaller commission percentages on orders it otherwise would have passed through at higher rates.
The layoffs and quota increases paint a picture of a struggling company. Direct selling is cratering industry-wide, and Scentsy is squeezing both its workforce and its distributors to stay afloat.
🤖 Quick Answer
What layoffs did Scentsy announce in early 2025?On January 3, 2025, Scentsy laid off 94 employees at its product distribution center in Coppell, Texas. The company filed a WARN notice on January 9 confirming the workforce reduction. Coppell serves as one of Scentsy's two major US distribution hubs, though total facility headcount was not publicly disclosed.
What changes did Scentsy make to its compensation plan in 2025?
CEO Dan Orchard announced significant revisions to Scentsy's independent consultant compensation structure in late January 2025. The changes included higher sales quotas required to earn commissions, representing a substantial overhaul of the earning framework that independent consultants had previously relied upon for income generation.
Which Scentsy product lines were discontinued or rebranded?
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