Avon to Cut 1500 Jobs and Exit 2 Markets
NEW YORK, Dec. 11, 2012 -- Avon Products, Inc. today outlined initial steps toward the company's previously communicated annual cost-savings target of $400 million by the end of 2015.
Initial steps of the cost-savings initiative will include a targeted global headcount reduction of approximately 1,500 positions and related actions. The company also announced today that it will exit the South Korea and Vietnam markets. These actions are aimed at concentrating resources on high priority markets and activities and boosting efficiencies, and are expected to be largely completed before the end of 2013.
Cost to implement these actions is expected to be in the range of $80-90 million before taxes, of which approximately $50-60 million is expected to be recorded in the fourth quarter of 2012. The company anticipates that these initial steps will account for approximately 20% of the total targeted savings.
"In order to turn around the business, we are focused on driving top-line growth and aggressively managing our cost base," said Sheri McCoy, Chief Executive Officer, Avon Products, Inc. "The decisions outlined today are necessary to stabilize the company and begin the process of returning Avon to sustainable growth."
The company expects to communicate additional steps toward the cost-savings goal as it progresses.
More Avon News and Articles
- Avon to Pay Millions to Settle Bribery Charges
- Avon Splits with DSA
- Avon Appoints Pablo Munoz Sr VP and President, North America
- Avon Announces Layoffs
- Avon to Close Two Distribution Facilities
- Avon to Cut 1500 Jobs and Exit 2 Markets
- Avon Announces Makeup Maven Video Contest
- Avon Appoints Chief Marketing Officer
- Avon Reports Disappointing Third Quarter Results
- Avon to Postpone 3Q 2012 Earnings Due To Hurricane
- Avon Executive Chairman to Step Down
- Avon Partners With Paula Abdul On Exclusive Holiday Collection
- Avon Reports Second Quarter 2012 Results
- Avon to Webcast Second Quarter 2012 Earnings Conference Call
- Avon Launches Corporate Responsibility Blog
- Avon Shares Fall 10 Percent After Coty Withdraws Takeover Bid
- Avon Acquisition Proposal Withdrawn by Coty
- Avon Board Considering Coty Buyout Offer
- Coty Raises Offer to Acquire Avon
- Avon Reports First Quarter 2012 Results
- Avon Investors File Lawsuit
- Avon Appoints New CEO
- Avon Products Rejects Buyout Offer from Coty Inc
- Avon Foundation for Women Announces Domestic Violence Grants
- Class Action Lawsuit Filed Against Avon and Mary Kay
- Avon Reports Fourth Quarter and Full Year 2011 Results
- Avon to Webcast 4th Quarter and Full Year Earnings Conference Call
- Avon CEO Steps Down
- Avon Launches Fundraiser for ALS TDI
- Avon Investigated by SEC and Attorneys for Shareholders
- Avon Announces New Anti-Aging Sun Care Product Line
- Jacqueline Bisset Becomes Avon Spokesmodel
- Avon in the New York Times
- Avon Shares Slide on Analyst Downgrades
- Avon Calling Again in New Recruit Drive
- Avon Signs Patrick Dempsey
- Avon Donates 1 Million to UNIFEM Fund
- Avon Introduces Youth Extending Cream
- Avon Shares Rise
- Avon Branches out with Retail Stores
- Avon In Midst of 3 Year Reorganization
- Avon Putting on a Fresh Face
- Avon Stays on Top of MLM Rankings
Avon Profile
Create a Free Avon Rep Listing