Avon Announces 1,500 Layoffs
Avon Products on Tuesday announced plans to lay off 1,500 workers globally. That's about 3.7 percent of its work force.
The layoffs, which Avon described as part of a previously announced initiative to cut $400 million in annual costs by the end of 2015, are expected to initially cost the company money. In conjunction with moves to exit the South Korea and Vietnam markets, Avon says it will be taking $50 million to $60 million in pre-tax charges in Q4 2012, followed by an additional $30 million in charges as the changes progress.
However, Avon believes it will see immediate cost savings of approximately $80 million annually as a result of changes made through year's end. This suggests that charges taken in late 2012 will be recouped over the course of 2013.
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