Avon Restructuring Impacts 2,300 Jobs
Avon Restructuring Impacts 2,300 Jobs
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Avon Restructuring Impacts 2,300 Jobs
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Charles Cramb, Avon's vice chairman, chief finance and strategy officer, says, "When fully implemented, the initiatives approved to date reflect almost half the costs to implement the 2009 restructuring program, and are expected to generate approximately 60 percent of the targeted annualized savings. As a result, we are on track to achieve our stated goal of approximately $200 million in total annualized savings by 2012-2013, with costs to implement all initiatives expected to be in the range of $300-$400 million."
The restructuring initiatives will include realignments in its global supply chain manufacturing footprint and improvements in operating model effectiveness in key geographies. As a result, approximately 2,300 positions will be impacted globally, with a net reduction of approximately 1,200 positions when the initiatives are fully implemented by 2012-2013.
The second-quarter 2009 charge will include costs-to-implement realignments of supply chain manufacturing operations, primarily in North America, Western Europe, and Central and Eastern Europe.
In North America, the company said that it will close its facility in Springdale, Ohio by mid-2012. In Western Europe, Avon is planning to close its manufacturing facility in Neufahrn, Germany, and it has entered into the required formal information and consultation processes with the economic committee and works council in Germany. In Russia, the company is planning to improve processes, reconfigure equipment and streamline operations at its facility in Naro Forminsk in order to meet increasing demand more cost-effectively.
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