Avon recently announced a series of layoffs that will eliminate approximately 400 jobs.
The company explained on Monday that it was in the process of restructuring the company in an effort to shed some of its underperforming divisions.
The Avon layoffs will greatly affect employees in Africa, Europe, and the Middle East. The company also stated that it intends to shutter all of its businesses in Ireland.
Although these regions will likely be hit the hardest by the layoffs, a company spokesperson explained that jobs will be cut across all regions. However, Avon refused to elaborate more on which areas would be affected by the decision.
Current Avon CEO Sheri McCoy was brought in to help the company get back on its feet. The shuttering of several businesses overseas is an effort to cut costs by around $400 million. The cosmetics giant is hoping to increase revenue growth by 2016.
The recent round of layoffs at Avon will account for roughly one percent of its current workforce. The company said it employs around 39,100 individuals.
“We continue to work aggressively toward turning around the business. The steps outlined today take us closer to our cost-savings goal. At the same time, we remain focused on continuing to streamline the business and driving top-line growth,” McCoy said in a statement.
This isn’t the first time Avon has decided to shrink the number of people on its payroll. The company announced last December that it intended to layoff around 1,000 employees. The cosmetics retailer also decided to pull its business out of South Korea and Vietnam.
“The decisions outlined today are necessary to stabilize the company and begin the process of returning Avon to sustainable growth,” McCoy explained last year.
Avon products are available in over 100 countries. The company stated that it currently has roughly six million independent sales representatives actively pushing its brand.
What do you think about the recent round of Avon layoffs? Do you think this spells trouble for the cosmetics company?
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