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Avon to Move Headquarters to UK and Cut 2,500 Jobs

Avon Products Inc., which split off its North American operations earlier this month, plans to eliminate about 2,500 jobs and shift its headquarters to the UK in a cost-cutting move.
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  • Bloomberg

NEW YORK, United States — Avon Products Inc., which split off its North American operations earlier this month, plans to eliminate about 2,500 jobs and shift its headquarters to the U.K. in a cost-cutting move.

The shake-up will generate one-time expenses of about $60 million in the first quarter from severance and other costs, the New York-based cosmetics company said in a statement Monday. Avon expects to generate savings of as much as $70 million from the cuts by 2017.

The move follows Avon’s separation of its North American business on March 1, when Cerberus Capital Management LP acquired majority control of the division. The split left Avon with a focus overseas, where door-to-door cosmetics sales are more popular. Relocating its headquarters to the U.K. is part of an effort to reduce corporate infrastructure, said Avon, which already has “significant” commercial operations in the country.

“The actions we are taking today will bring our corporate and commercial businesses closer together, which will drive efficiencies, improve operational effectiveness and deliver significant cost savings,” Chief Executive Officer Sheri McCoy said in Monday’s statement.

Avon shares rose as much as 3.9 percent in late trading after the announcement. The stock climbed 8.1 percent this year through Monday’s close.

By Nick Turner; editor: Mark Schoifet.

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