HR lady calling: Cosmetics company Avon reduces headcount by around 2,500 worldwide as struggling firm sets out new transformation plan, including moving headquarters to UKHeat Profit
The move should save the company around $30m in 2016 (Source: Getty)
Avon today revealed that it would be cutting its headcount by around 2,500 positions in a bid to transform the struggling cosmetics company.
The headcount reduction includes both filled and open positions worldwide.
The company revealed that the decision had come as a result of management rethinking the commercial business of the cosmetics giant and trying to streamline corporation functions. The organisation will also begin to gradually shift its headquarters over to the UK.
“Today, we are taking another important step forward in the execution of Avon’s transformation plan,” said Sheri McCoy, chief executive of Avon “With the recent completion of the sale of the North American business, our commercial operations are now fully outside of the United States, allowing us to dramatically rethink our operating model.
“The actions we are taking today will bring our corporate and commercial businesses closer together, which will drive efficiencies, improve operational effectiveness and deliver significant cost savings.”
Avon expects the lowered staff numbers to save it around $30m (£21m) in 2016, and forecasts annual savings of roughly $65m – $70m going forward from 2017.
Last December, Avon separated its North American business from the main company in a deal with private Investment firm Cerberus Capital Management.