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April 09, 2013

Avon Products Inc plans to cut over 400 jobs, exit Ireland

Avon Products Inc said on Monday it will slash more than 400 jobs as part of a turnaround plan aimed at restoring the cosmetics maker to profitability.


Avon, the world's already showing signs of improvement biggest direct seller of cosmetics, is under its new chief executive, Sheri McCoy, who was brought in a year ago.

"We continue to work aggressively toward turning around the business," McCoy said on Monday.

In February, Avon reported surprisingly strong fourth-quarter earnings after reversing sales declines in top markets like Brazil and Russia.

Job will be cut across all regions and functions and will include the restructuring or closing of smaller, underperforming markets, primarily in Europe, the Middle East and Africa, Avon said.

It will leave the Ireland market.

The cuts, which will be completed by the end of the year, are expected to generate $45 million to $50 million in annual savings.

They are part of McCoy's plan to cut overall costs by $400 million.

Total charges related to the cuts are expected to range from $35 million to $40 million, with about $20 million of that being recorded in the first quarter of 2013, the company said.

indiatimes.com

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