Dec 11 Avon Products Inc said it will
cut about 1,500 jobs globally and will exit the South Korea and
Vietnam markets as part of a turnaround plan announced in
Last month, the world's largest direct seller of cosmetics
slashed its dividend by nearly 74 percent and announced measures
to cut hundreds of millions of dollars in costs in the next few
years as the company continued to face difficulties in key
Avon estimated the latest round of restructuring would cost
in the range of $80-$90 million before taxes, of which about
$50-$60 million is expected to be recorded in the fourth quarter
of 2012. The company expects these steps will account for about
20 percent of the total targeted savings.
Higher product costs, unfavorable exchange rates and ongoing
difficulties in key markets like Brazil, the United States and
Russia, continued to bedevil Avon in the third quarter and it
reported a sharp plunge in profit for the period.
Avon said expects to communicate additional steps toward the
cost savings goal as it progresses.