01.08.08
Avon Products Inc. announced it plans to cut 2,400 jobs as part of a multi-year restructuring plan, which will ultimately save the company $430 million annually.
The company said that it expects to incur a charge of approximately $120 million in the fourth quarter 2007. Included in this charge are: restructuring of some international direct selling operations, most significantly in Germany; realigning supply chain operations in Western Europe and Latin America; outsourcing call centers and transaction processing functions; and several other minor initiatives. Costs associated with previously announced restructuring initiatives are also included in the fourth-quarter statement.
Avon said that as a result of the initiatives, approximately 4,000 positions would be impacted globally, with a net reduction totaling approximately 2,400 positions when the program is fully implemented.
