Avon to cut 400 jobs as part of cost savings initiative

As part of its previously announced initiative to save $400m by 2016, Avon Products Inc. has today confirmed that it will reduce its global headcount by more than 400 across all regions and functions. In a move to boost efficiencies and concentrate resources on high priority markets and activities, Avon will also restructure or close certain smaller, under-performing markets, primarily in EMEA, which will include exiting the Republic of Ireland market.

The company says it expects these actions to be largely completed before the end of 2013 and that they should generate approximately $45m to $50m in annualised savings, when fully implemented. Total charges, meanwhile, are expected to be in the range of $35m to $40m before taxes.

"We continue to work aggressively toward turning around the business,” commented Avon CEO Sheri McCoy. “The steps outlined today take us closer to our cost saving goals. At the same time, we remain focused on continuing to streamline the business and driving top-line growth.”

Avon is currently in the process of exiting South Korea and Vietnam, and recently revealed plans to close two distribution facilities in the US. The company says it expects to provide additional updates as the cost savings initiative progresses, indicating the possibility of further cuts to come.