Avon Trims North America Business in Latest Turnaround Effort

In the latest phase of its turnaround efforts, direct selling giant Avon has announced plans to downsize its corporate organization and North America business.

On Monday the company stated it will cut 600 positions as a part of its initiative to save $400 million by 2016. The restructuring will result in up to $50 million in pretax charges, largely in the second quarter.

Avon North America sales dropped 17 percent in 2013. The company expects its latest efforts to result in annualized savings of $50 million to $55 million.

CEO Sheri McCoy is moving to stabilize Avon’s business by pulling out of unproductive markets, reducing spending and cutting jobs. Last year Avon U.S. divested its jewelry unit, Silpada Designs, to focus on its core business in the region.

In other company news, Avon’s board of directors has announced that former Warnaco Group President and CEO Helen McCluskey will join the company’s board in July. McCluskey also brings merchandising expertise from brands like Liz Claiborne, Sara Lee and Playtex Apparel.

“Helen has a valuable blend of branding, marketing and international experience,” said Doug Conant, Chairman of Avon’s Board of Directors. “Having led a public company previously, she brings a wealth of knowledge to Avon’s board, and we are excited to welcome her.”

Advertisements

About Direct Selling News
Direct Selling News Magazine has been serving direct selling and network marketing executives since 2004. Each issue of Direct Selling News offers content on topics that shape the dynamics of our industry.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: