April 8 - Avon plans to cut over 400 jobs across all regions and functions in a latest attempt to return the company to profitability. Conway G. Gittens reports.
The Daily Digit is 400. Avon, the world's largest direct seller of cosmetics, is slashing more than 400 jobs across all regions and functions. The cuts include restructuring or exiting from smaller, underperforming markets, primarily in Europe, the Middle East and Africa. Staff reductions are designed to be completed by the end of the year and bring in up to $50 million in cost savings annually. The cuts are part of new chief executive Sheri McCoy's bigger plan to return the company to profitability in the next two years. And it seems to be working. The company is already showing signs of stabilizing its business, following years of inconsistent sales in Brazil and Russia and dwindling business in China and the United States. And it is that last market, which is McCoy's key priority. She wants to reverse a long slide in U.S. sales. Avon had around 39 thousand employees as of December, and more than six million active sales representatives.