American manufacturer of food for malnourished babies lays off staff amid USAID funding upheaval
Source: CBS News
Updated on: March 20, 2025 / 8:27 PM EDT
Edesia Nutrition was among the fortunate few whose USAID agreement survived a whipsaw couple of months that saw the cancellation of more than 80% of the agency's foreign assistance contracts. Despite that, the Rhode Island manufacturer of a life-saving paste for severely malnourished babies last week had to lay off 10% of its workforce. Edesia's founder and CEO, Navyn Salem, said even though her company's contract is active, its invoices to USAID have been rejected twice this week.
The delay in promised funds halted her production line, as well as payments to her largely American supply chain, including farmers who cultivate ingredients for the paste product's key ingredients. The layoffs were "the hardest thing I've ever had to do," Salem said. "The people here are like part of my family. I've been to their weddings. I've been to their family's funerals. I know their grandchildren. We're an interconnected family," Salem said.
As Elon Musk, the richest person in the world, and others who work for President Trump have targeted the State Department agency USAID, a variety of global health nonprofits have faltered amid dramatic supply chain disruptions. Musk himself weighed in on March 2, posting on his social media site that Edesia's contract would be spared.
At the time, a vital USAID payment system had yet to be restored. Salem said it was restarted recently, but on Tuesday and Wednesday she heard from USAID that at least two of her invoices had been rejected. One was denied because her goods had not yet shipped, while the other was denied even though it was for a batch that had shipped. She said it's not clear why that one was rejected. In the meantime, bills are piling up.
Read more: https://www.cbsnews.com/news/american-manufacturer-of-food-for-malnourished-babies-lays-off-staff-amid-usaid-funding-upheaval/
Death Panels.
DOGE = Death Of Government Employees
-OR-
Death Of Global Economies
= new reply since forum marked as read
