Avon to cut 2,400 jobs as part of restructuring

0 Comments | Deseret News (Salt Lake City), Jan 9, 2008 | by Associated Press

NEW YORK -- Avon Products Inc. on Tuesday said it will cut 2,400 jobs as part of its multiyear restructuring plan, which will save the beauty-products maker $430 million annually.

Avon unveiled its restructuring program in Nov. 2005. It involved steep job cuts, the elimination of management layers and the realignment of manufacturing centers and outsourcing work to countries with cheaper labor costs.

The company, which sells beauty products to women directly, operates in 100 countries through more than 5 million independent sales representatives.

In the fourth quarter, the company will take a charge of $120 million for restructuring some international direct selling operations, realigning supply-chain operations in Western Europe and Latin America, outsourcing call centers and other initiatives.