Avon to Eliminate 400 Jobs, Leave Ireland in Cost Cut Plan
Avon Products Inc. (AVP), the door-to-door cosmetics seller, will exit Ireland and cut 400 jobs worldwide as part of a plan to save $400 million by 2016.
Operations in smaller, underperforming markets, primarily in Europe, the Middle East and Africa, will be restructured or closed, the New York-based company said today in a statement. Avon expects $35 million to $40 million in pretax costs and about $20 million will be booked in the first quarter.
Today’s reductions follow an announcement last year to eliminate 1,500 jobs and leave the South Korean and Vietnam markets as Chief Executive Officer Sheri McCoy works to cut costs. In February, Avon said it would evaluate alternatives for the Silpada jewelry unit, where sales fell 18 percent in the fourth quarter.
Avon rose 1.7 percent to $20.61 at the close in New York. The shares surged 44 percent this year, compared with a 9.6 percent gain for the Standard & Poor’s 500 Index.
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