Avon to cut approximately 600 jobs as it tries to reduce spending; most of the eliminated jobs will be in its corporate organization and North American business unit
Nevin Barich
NEW YORK
,
June 24, 2014
(press release)
–
Avon Products, Inc. (NYSE: AVP) today announced additional actions as part of the company's ongoing turnaround efforts to return Avon to sustainable, profitable growth.
These steps are related to continued efforts to right size the cost structure, improve organizational effectiveness, streamline processes to gain efficiencies and reduce cost across the organization. These actions are primarily global headcount reductions of approximately 600 positions, largely in the corporate organization and North America business unit.
Total charges to be recorded as a result of these actions are expected to be approximately $45 million to $50 million before taxes, with approximately $40 million expected to be recorded in the second quarter of 2014.
The company expects these restructuring actions to result in annualized savings of approximately $50 million to $55 million before taxes as part of the $400 million Cost Savings Initiative. In connection with the restructuring actions approved to-date associated with the $400 million Cost Savings Initiative, we expect to realize annualized before-tax savings of approximately $240 million to $250 million.
About Avon
Avon, the company for women, is a leading global beauty company, with $10 billion in annual revenue. As one of the world's largest direct sellers, Avon is sold through more than 6 million active independent Avon Sales Representatives. Avon products are available in over 100 countries, and the product line includes color cosmetics, skincare, fragrance, and fashion and home products, featuring such well-recognized brand names as Avon Color, ANEW, Skin-So-Soft, Advance Techniques, and mark. Learn more about Avon and its products at www.avoncompany.com.
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