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By
Reuters
Published
Mar 15, 2016
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Avon to cut 2,500 jobs, shift headquarters to UK

By
Reuters
Published
Mar 15, 2016

Cosmetics maker Avon Products Inc said on Monday it would cut about 2,500 jobs worldwide and shift its corporate headquarters to the UK as part of its three-year turnaround plan.


Avon


Avon shares were up nearly 4 percent at $4.55 in extended trading.
The company sold most of its North American business to Cerberus Capital, its biggest investor, after four years of falling sales.

Avon said it expected to record $60 million in pre-tax charges related to job cuts in the first quarter.

The company, which has 28,300 employees, said the transition of its headquarters would occur over time.

In January, Avon had outlined plans to cut $350 million in costs over the next three years, invest in technology and tap social media to revive sales.

However, a bigger-than-expected fall in fourth-quarter sales indicated that the company had failed to revive demand for its cosmetics in key markets.
Avon said it would maintain its current facilities in Suffern and Rye, New York and continue to trade on the New York Stock Exchange under its current symbol.

 

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