EMCC European Monitoring Centre on Change

Avon

Company/Organisation:
Avon

Geographic Location

Country: World
Location of affected unit(s): UK, USA

Company

Sector: Manufacturing
Manufacture of chemicals and chemical products
20.42 - Manufacture of perfumes and toilet preparations
Number Employed: 28300

Employment Effects

Announcement Date: 14-03-2016
Planned Job Reductions min: 2500
Planned Job Reductions max: 2500
Type of Restructuring: Relocation
Employment Effect Start: 15-03-2016
Foreseen End Date: 31-12-2016
Direct Dismissals: 2500

Additional Information

Cosmetics manufacturer and retailer Avon has announced that it will cut around 2,500 jobs worldwide, as part of a relocation of its head office from New York to London. This is part of a strategy to improve the company's financial performance, which has undergone four years of quarterly revenue decline and seen its stock value drop by forty percent over the last twelve months. Avon has announced cost cuts of $350 million ($70 million of which will fall this year) as part of this strategic recovery plan. The job cuts will affect around 7% of Avon's work force, and 1,700 of the 2,500 losses will occur this year. This is part of a wider restructuring, as Avon has sold its North American operations to its biggest investor, private equity firm Cerberus Capital, who will continue to invest and develop the North American operations. Avon's research centres in New York will be unaffected, and the company will continue to trade on the New York Stock Exchange.