NORTH KINGSTOWN – Edesia Inc. says it has laid off 16 workers, accounting for about 10% of its staff, due to a lack of U.S. Agency for International Development payments.
Founder and CEO Navyn Salem announced the news on Edesia's Facebook page on March 14 amidst the ongoing federal funding freeze.
"Today, my heart is heavy. I had to lay off 10% of our team, some of whom have been part of the Edesia family for over a decade," Salem wrote. "While the U.S. government fully supports our life-saving mission, the reality is harsh: We cannot save enough babies. We cannot employ our dedicated staff. We cannot purchase raw materials from American farmers without being paid."
The nonprofit, which was founded in 2010, employed more than 150 people who produce specialized foods that target global malnutrition prior to the layoffs.
The nonprofit has not received any USAID payments since November, despite $200 million in federal funds being allocated for Edesia in May 2024. Last year alone, USAID accounted for 85% of Edesia’s funding.
Salem told Providence Business News on Monday that she also just learned that the Phoenix system USAID uses is still down, "and will most likely be four to six weeks minimum until we might get paid."
Meanwhile, Edesia Quality Control Lead Debora Avancini posted the following message to all staff in a Sunday company newsletter.
"While working 2nd shift last night, the production floor was silent. No music, only the noise of the machines," she said. "You could see people tearing up and crying as they worked quietly. On other nights, when I walk by the production lines, a crew member would be singing, loudly, along with the music. And wow, can they sing! That always made me happy. I want you to think about that. What other place do you know of where people sing while they work?"
The news of Edesia's layoffs comes weeks after Department of Government Efficiency [DOGE] Director
Elon Musk promised that the humanitarian aid agency would receive a payment in the first week of March.
“The contract mentioned above with Edesia had already been restored last week and they should receive payment this coming week,” Musk tweeted on X March 2.
Salem responded hours later on X to the head of the Department of Government Efficiency, or DOGE, “
@elonmusk thank you for fixing this. Starving babies can’t wait. The
@EdesiaNutrition team [is] eager to help the
@DOGE team in making American AID great again with the highest level of efficiency.”
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
