Avon Products Inc. (AVP) announced further details of its previously announced $400 million Cost Saving Initiative by 2016. The latest actions include a global headcount reduction of more than 400 associates across all regions and functions, and the restructuring or closure of certain smaller, underperforming markets, primarily in Europe, Middle East & Africa, including the exit of the Republic of Ireland market. The company expects these actions to be largely completed before 2013-end. The company expects the total charges related to these actions to be in the range of $35 million to $40 million before taxes.
Avon Products expects these actions to generate approximately $45 million to $50 million in annualized savings, when fully implemented, as part of its $400 million cost savings goal. Avon expects to provide additional updates as the cost savings initiative progresses.
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