08 January 2008

Avon To Cut 2,400 Jobs

iWon News -
Avon Products Inc. on Tuesday said it will cut 2,400 jobs as part of its multiyear restructuring plan, which will cost more than originally expected and ultimately save the beauty-products maker $430 million annually.

The restructuring plan will cost $530 million, up from a previous estimate of $500 million, of which $460 million will have been taken through the fourth quarter of 2007. The remainder will be recognized by the end of 2009.

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. It will also take a $110 million charge for inventory write-offs.

About 4,000 jobs will be affected by the restructuring and a total of 2,400 jobs will be cut in total.

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