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Avon to Cut 600 Jobs
Posted: June 24, 2014
Avon Products 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 $45–50 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 $50–55 million before taxes as part of its$400 million cost savings initiative. In connection with the restructuring actions approved to-date associated with the $400 million cost savings initiative, Avon expects to realize annualized before-tax savings of approximately $240–250 million.