US direct seller Avon is expected to make additional job cuts in line with its previously announced cost savings initiative. It has also made the decision to stop the roll-out of a new order management system, which has been piloted in Canada and caused "significant business disruption in that market”.
According to theWall Street Journal, the system, known as the Service Model Transformation (SMT), was initiated in 2009 in a bid to simplify how Avon representatives do business with the company.
It will continue to be used in Canada, although that will be the only market in which it is used.
Meanwhile, Avon remains focused on its $400m cost savings initiative, which was announced in April this year. It recently revealed that it will now plants to cut 650 jobs – an increase on the previously stated 400 jobs – and as a result, expects to face charges of up to $45m from employee-related costs.