Avon Products Inc., the world's largest door-to-door seller of cosmetics, said it plans to record expenses of as much as $5 million US before taxes as part of the company's attempt to increase profit by eliminating jobs.
The costs are part of $500 million New York-based Avon expects to spend as it reorganizes, including cutting as many as 1,300 positions over the next several years. Avon spokesman Victor Beaudet declined to comment on how many job cuts were associated with the $5-million expense. Avon has 45,000 workers.
Chief executive officer Andrea Jung is eliminating jobs, closing unprofitable units and increasing advertising as Avon tries to compete in cosmetics with larger companies such as Procter & Gamble Co. In July, Avon reported that second-quarter net income declined 54 per cent to $150.9 million, or 33 cents a share.
Avon Products reorganization will trim jobs
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