Avon Products Inc. announced it will cut jobs and take $5 million in charges as part of a restructuring effort.
The company said it would terminate an undisclosed number of employees and outsource some services, a move expected by the end of 2008, according to a filing with the Securities and Exchange Commission.
The restructuring effort is anticipated to cost about $500 million and began in 2005. Avon expects to record charges, most of which will result in future cash expenditures, of about $5 million before taxes for employee-related costs related to the plan. Avon said the company expects to announce further exit and disposal costs in the future.