Posted on 03/15/2016 6:52:28 AM PDT by SeekAndFind
New York (AFP) - Struggling cosmetics company Avon Products, Inc. said it was eliminating 2,500 jobs and moving its headquarters to Great Britain, its latest restructuring after selling off its North American business.
The changes were expected to cost $60 million before taxes in mostly employee-related charges in the first quarter of 2016, but headcount reduction will result in $30 million in savings this year, the company said in a statement, released on Monday.
Savings were expected to reach up to $70 million in 2017.
Avon has "significant commercial operations" in Great Britain and the move would happen "over time," the statement said, without giving a specific timeline.
"With the recent completion of the sale of the North American business, our commercial operations are now fully outside of the United States, allowing us to dramatically rethink our operating model," Avon CEO Sheri McCoy said in the statement.
The company will maintain two facilities in New York state, continue to be incorporated in New York and trade on the New York Stock Exchange.
Shares of Avon (AVP) were up two percent in after-market trading.
As of late last year, Avon employed 28,300 people outside of North America.
(Excerpt) Read more at news.yahoo.com ...
More ammo for Trump
Where are they located now?
Thanks Obama, better tax those millionaires and billionaires even more to make up for the loss of jobs.
RE: Where are they located now
Their HQ is in New York
Avon people are such ding-dongs
Britain is now more business-friendly than New York State.
Houston, we have a problem.
the problem is hydration
Oil of Olay products have much better hydration properties than Avon
being slow to the hydration wars, Avon lost their business
and then there was the energy problem. Avon products didn’t energize their customers either.
Avon's problem is its inability to adapt and change. It's original business model lost out to other start up such as Mary Kay. It ventured into "mail order" which is a disaster for cosmetics. Then it could never balance its retail sale force with retail store sale strategy.
Especially with the rise in popularity of stores like Ulta and Sephora.
Avon really missed a huge opportunity by not negotiating space in these stores to promote their product to the new generation of customers.
Some of my galpals use Avon, but it seemes to me that their sales structure is a twin to the old Amway setup. Anyone here ever sell both? Just a-wonderin’...
Skin So Soft....................BEST insect repellent ever........Stays in my tackle box.
I know that Oil of Olay was a broad product line now....but back in the day, when they just had that one moisturizer (in the flat square bottle) it was know as the Dermatologist best friend. Why? Women who hadn’t had a pimple in 20 years suddenly looked like their teenage sons...it was pore clogging and irritating to say the least.
That said, Avon had a great niche market. Not high end unaffordable, and the books I swear we’re in every office I ever worked in. If everyone else is ordering...heck, let me see those earrings, and who doesn’t want another lipstick!!!
Their Silicone Glove (hand creme) is the best!!!
And another business flees the business hostile regulations and taxes of the USA.
Save $70,000,000.00 the first year?
I’d move.
How can the UK be a better place for business than America? Mind-boggling.
If Avon sold off its U.S. business units, it's not really an American company anymore. No reason to hang around just to pay extortionate U.S. and New York corporate taxes on its foreign earnings. The real question is how the spinoff businesses will do under new ownership.
DING DONG!
Avon leaving.
Supports what D. Trump has been saying all along.
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