Avon Products said that it plans to reduce its global workforce by 10% this year.
The cosmetics and personal care company expects the employee retrenchment to save about $97 million (before taxes) by the end of this year. It estimates charges related to layoffs to be about $100 million before taxes.
Last year, Avon slashed 8% of its employee count. This year’s workforce reduction is apparently a part of the company’s restructuring and inventory management. "Decisions like these are always difficult, however, we must take the actions necessary to improve our operations and strengthen our ability to continue investing in our transformation initiatives and fuel our future growth”, said Jan Zijderveld, CEO of Avon.
Avon is also cutting back on its Stock Keeping Units (or SKU codes) by a quarter to save on long-term costs.