Avon to Cut 600 Jobs as CEO McCoy Seeks to Trim ExpensesKevin Orland
Avon Products Inc. plans to cut 600 jobs as Chief Executive Officer Sheri McCoy trims costs in a bid to restore profitability at the world’s largest door-to-door cosmetics seller.
The job cuts, which will be mostly from the corporate organization and the North American business, will save $50 million to $55 million a year before taxes, the New York-based company said yesterday in a statement. The moves will result in as much as $50 million in pretax charges.
McCoy has been cutting jobs and exiting markets as part of a plan to save $400 million by 2016. Avon also is reviewing operations in smaller, underperforming markets to be restructured or closed and last year sold its Silpada jewelry unit. The company has posted net losses in five of the past six quarters.
Avon announced 650 job cuts in December.
The shares fell 1.7 percent to $14.69 at the close in New York yesterday. They have slid 15 percent this year, compared with a 6.2 percent gain for the Standard & Poor’s 500 Index.