Sometimes, it's tough to turnaround when you're in a dead end. But that's what Avon Products' management is determined to do and the company will eliminate 600 jobs in an attempt to get headed in the right direction. The cuts will come, primarily, in the corporate organization and the North American business unit.
Total charges to be recorded as a result of these actions are expected to be approximately $45 million to $50 million before taxes, with approximately $40 million expected to be recorded in the second quarter of 2014, according to Avon.
The company expects these restructuring actions to result in annualized savings of approximately $50 million to $55 million before taxes as part of the $400 million Cost Savings Initiative. In connection with the restructuring actions approved to-date associated with the $400 million Cost Savings Initiative, Avon expects to realize annualized before-tax savings of approximately $240 million to $250 million.