Avon Products launches savings initiative

Avon Products has elaborated further as it how it will go about its previously announced $400m million ‘Cost Saving Initiative by 2016’.

The company has begun by reducing its global workforce by more than 400 across all regions and verticals.

The initiatives would be predominantly taken in Europe, Middle East & Africa, which would also include the exit of the Republic of Ireland market.

These initiatives are claimed to be a bid to boost efficiencies and concentrate resources on high priority markets and activities.

This activity is to complete in large part before the end of 2013.

About $35m-$40m before taxes would be total charges related to these actions and approximately $20m of that sum is to be recorded in the first quarter of 2013, said the company.

When implemented in totality, these actions will generate about $45-$50m in annualised savings.

Avon Products CEO Sheri McCoy said the company would continue working aggressively toward changing the face of its business.

"The steps outlined today take us closer to our cost-savings goal. At the same time, we remain focused on continuing to streamline the business and driving top-line growth," added McCoy.

Additional updates are expected to be provided by the company as the cost savings initiative marches ahead.

Avon is a global beauty company, with nearly $11 billion in annual revenue. Avon products are available in over 100 countries, and the product line includes color cosmetics, skincare, fragrance, fashion and home products, featuring such well-recognized brand names as Avon Color, ANEW, Skin-So-Soft, Advance Techniques, and mark.