The direct-beauty merchant said it would eliminate 400 jobs across its business and exit some smaller, underperforming markets, including Ireland.
Avon, which employed roughly 39,100 at the end of 2012, said the cuts are expected to be completed this year and are aimed at “boosting efficiencies and concentrating resources on high priority markets and activities.”
The changes are projected to produce annual savings of between $45 million and $50 million, but will initially cost the firm between $35 million and $40 million before taxes.
Avon plans to cut costs by a total of $400 million by 2016.
“We continue to work aggressively toward turning around the business,” said Sheri McCoy, chief executive officer. “The steps outlined today take us closer to our cost-savings goal. At the same time, we remain focused on continuing to streamline the business and driving top-line growth.”
Avon did not specify what other markets it might exit, but said it was restructuring or closing “certain smaller, underperforming markets” mostly in Europe, the Middle East and Africa.
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion
Exclusive: Cate Blanchett has been named the first global beauty ambassador for @armanibeauty. Blanchett has been the face of the brand’s Sì fragrance franchise since 2013, and is now representing all of the label’s beauty categories including makeup and skin care. #wwdbeauty (📷: @zefashioninsider)
“From concept to creation, my goal was to create beautiful pieces, with a variety of sizes, all at affordable prices,” said @joansmalls of the swimwear and intimate apparel she designed for @smartandsexysocial. The collection includes neon laced bras, sheer bodysuits and swimwear separates. The intimates collection will launch in July, while the swimwear collection will be available for purchase on Tuesday at select @walmart stores, walmart.com and smartandsexy.com. #wwdfashion