Avon Products, Inc. (NYSE:AVP) slashes 400 workforce; exits Ireland market

Northern, WI 04/09/2013 (avauncer) - Avon Products, Inc. (NYSE:AVP) (Current:  $20.61, Up by: 1.73%), a manufacturer and seller of cosmetic and beauty products, is eliminating 400 jobs at part of its turnaround strategy. The job cuts are part of the company’s plan to save $400 million by 2016.

As part of cost-saving measures, Avon has decided to exit the Ireland market. The company said it plans to restructure or exit underperforming markets, including Europe, Middle East and Africa.
Avon expects the total charges related to these actions to be $35 to $40 million before taxes and about $20 million will be recorded in the first quarter of 2013. Through these cost-cutting initiatives, the company plans to generate $45 to $50 million in savings annually.

The company’s actions, expected to be completed by before the end of this year, would help Avon boost its efficiencies and concentrate more on high priority markets and activities.

Avon’s sales for the fourth quarter of 2012 decreased 1% to $3 billion. The company’s beauty sales declined 2%. Sales for skin care products fell 5% during the quarter. While Avon’s total revenue for full fiscal year 2012 was recorded $10.7 billion, a decrease of 5%. Total beauty sales declined 5% in 2012.

The company’s net debt as of December 31, 2012 was $2 billion, down $77 million from December 31, 2011.