Avon Reorginization Mean More Layoffs

 Cosmetics Design

Further to its latest round of layoffs, direct cosmetics sales giant Avon says it is expecting to log charges of between $8m million and $12m for its latest round of staff cuts, which means total charges for staff cut backs have already topped $100m.

Although the company did not relate which specific positions the latest payments related to, the latest move is part of a comprehensive world-wide restructuring program that has seen Avon trim its 48,000 international workforce by nearly 5 per cent. Currently around 20 per cent of that workforce are employed in the US, with the remaining working in its operations worldwide. The company has hinted that a great deal of the restructuring will concentrate on streamlining the company’s workforce, particularly at the middle management level.

At the end of last month the company said that it would record total charges, mostly as future cash expenditures, of approximately $25 - 30 m before taxes for cost relating to the termination of the 900 employee contracts.