Edesia Nutrition lays off staff due to payment delays

Edesia Nutrition, a Rhode Island company that makes food for malnourished babies, has laid off 10% of its staff. This decision comes despite their contract with USAID surviving recent budget cuts. The layoffs are due to payment issues with USAID. Navyn Salem, Edesia's founder and CEO, announced last week that her invoices to USAID were rejected twice. Even though the contract is active, these payment delays halted production and affected suppliers. Salem expressed deep concern for her employees, describing them as family. The payment problems started after USAID faced significant disruptions. A spokesperson from the State Department cited flaws in the agency's payment systems as the cause of the delays. They noted that USAID's current setup is inefficient and complicated. Edesia produces Plumpy'Nut, a vital food for severely malnourished children, especially in areas affected by famine in Africa. Although their production capabilities are high, the delays have resulted in excess inventory. Salem mentioned that Edesia is adapting to these challenges by becoming more efficient, likening their transformation to that of a startup. Despite the difficulties, she remains optimistic about their mission to help feed children around the world.