Avon Products to shut distribution centres in Pasadena and Atlanta

Beauty products direct selling company Avon Products is shutting down its distribution centres in Pasadena and Atlanta in the US, in a bid to save $400m a year by the end of 2015.

The Pasadena facility, which was opened in 1946 and is said to be the firm’s oldest distribution facility in the US, serves the company’s West Coast region.

Pasadena facility occupies 353,000ft² space and employs about 170 workers.

Avon Products spokeswoman Jennifer Dwyer Vargas said the firm will work on its transition plans and outplacement packages.

"But their options may be limited in terms of transferring to other positions," Vargas added.

"We communicated this news today even though we don’t have all the pieces yet."

"They will be hearing more and more from their (Human Resources) people."

Orders processed at the Atlanta branch will begin to transition to Avon’s Zanesville, Ohio facility in next few months, and the process is expected to be completed by summer.

The firm said the plans for the Pasadena facility are still in development, and orders processed in the location are expected to shift in 2014.

Avon Products is a US-based personal care products manufacturer and seller company, which operates in more than 140 countries across the world.

The firm’s portfolio includes cosmetic product ranges, such as fragrances, skin care, makeup, colour compacts and personal care.

Avon posted a net income of $513.6m in 2011, down from $606.3m in 2010 and $625.8m in 2008.