Jan 31, 2019
Download the article
Click here to print
Text size
aA+ aA-

Avon announces changes to operations strategy, cuts 10% of global staff

Jan 31, 2019

Avon Products Inc. is cutting its global workface by 10 percent as part of its ongoing restructuring efforts, the company announced on Wednesday. 

Avon announces changes to operations strategy, cuts staff. - Facebook: Avon

The cuts follow an 8 percent workforce reduction seen in 2018, which will allow the company to save approximately $97 million by the end of the year.
The direct-selling cosmetics company also announced that it is taking steps to reduce the complexity of its product line and reduce inventory holding levels with a 15 percent reduction in inventory levels and a 25 percent reduction in Stock Keeping Units. Avon will take a one-time inventory obsolescence expense of approximately $88 million, as a result of its SKU reduction efforts. 

"Core to our 'Open Up' Avon strategy is to have simpler, leaner operations, and for our infrastructure and mindset to reflect Avon's reality. The initiatives announced today all advance these objectives," said Jan Zijderveld, CEO of Avon, in a news statement. 
"This reset is an opportunity for us to sharpen our portfolio and concentrate on products that are important and relevant to our customer.” 
Avon has been struggling for years. It first announced its long-term strategy to “Open Up Avon” and return to growth in September, which included plans to reboot its sales model and develop its digital capabilities.

Copyright © 2023 FashionNetwork.com All rights reserved.