Avon Products Inc. is cutting 10 percent of its workforce as part of an ongoing turnaround effort, the company said Wednesday.
The business said the staff cuts are on top of an already-announced 8 percent workforce reduction that was completed in 2018. Those cuts should allow the company to save $97 million by the end of 2019.
Avon also said it would take a onetime $88 million inventory expense as a result of stockkeeping-unit reductions. The business plans to cut 25 percent of sku’s and 15 percent of inventory, it said Wednesday.
“Core to our ‘Open Up’ Avon strategy is to have simpler, leaner operations, and for our infrastructure and mind-set to reflect Avon’s reality,” said the beauty firm’s chief executive officer Jan Zijderveld. “This reset is an opportunity for us to sharpen our portfolio and concentrate on products that are important and relevant to our consumer.”
Zijderveld, who joined Avon from Unilever last February, has made a slew of changes since joining the business, including hiring seasoned direct-selling executives and working to digitize and modernize Avon’s business. Avon has struggled for years, and in 2016, spun off its North America operations to private equity firm Cerberus Capital Management.
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