AVON WORKERS GET SEVERANCE
NEW YORK — In a 10-K filing with the Securities and Exchange Commission, Avon Products Inc. said it would pay severance to 3,500 of its employees whose positions would be eliminated as part of its restructuring laid out last May.
The direct beauty merchant took a $97.4 million pretax charge in the fourth quarter, two-thirds of which was for facility closures and severance.
“The net reduction in employment may be less than the 3,500 because we may add to the workforce in some facilities we expand and we may build a new facility,” said an Avon spokesman. The reductions account for 8 percent of Avon’s worldwide workforce.
Avon also upped its capital expenditure program for 2002 to between $220 million and $230 million, compared with $155.3 million last year.