Avon to Cut 400 Jobs; Pull out of Underperforming Markets
Avon Products Inc detailed today its previously announced plans to introduce $400 million Cost Saving Initiatives by 2016. This announcement shared that more than 400 associates across all regions and job functions as well as the restructure or closure of underperforming markets located in Europe, the Middle East and Africa and a complete exit from its Ireland market.
“We continue to work aggressively toward turning around the business,” said Avon Chief Executive Officer Sheri McCoy. “The steps outlined today take us closer to our cost-savings goal. At the same time, we remain focused on continuing to streamline the business and driving top-line growth.”
The introduction of these initiatives at Avon are expected to “boost efficiencies and concentrate resources on high priority markets and activities”. The restructure of employees and markets, Avon anticipates, will cost $35 to $40 million but will generate $45 to $50 million in annual savings.
Avon is a leading global beauty company that bring in $11 billion annually. The company is one of the largest employers of direct sellers and its products are sold through 6 million plus independent Avon Sales Representatives. Products include cosmetics, skincare, fragrance, fashion and home merchandise available in 100 countries.