Breaking News

Avon To Cut Workforce, Halts ‘SMT’ Program

January 1, 2014

Avon Products, Inc. has outlined details of the company’s previously announced $400 million cost savings initiative by 2016. The latest actions primarily consisted of global headcount reductions totaling 650 positions, including those related to the company’s service model transformation (SMT) project, and some additional headcount reductions in North America.

Avon has announced its decision to halt further rollout of SMT, a multi-year global initiative, which enabled changes to the way representatives interact with the company, including an updated order management system. Earlier in 2013, SMT was piloted in Canada, causing significant business disruption in that market, and did not show a clear return on investment. The decision was made in light of the potential risk of further disruption. The company’s focus is on stabilizing and growing the business and improving operating capability, which includes updating IT infrastructure in a way that delivers clear return on investment.

As a result of the decision to halt further rollout of the SMT project, the company also expects to record a pre-tax non-cash impairment charge of approximately $100 million to $125 million in the fourth quarter of 2013, reflecting the write-down of capitalized software.

Although it is halting SMT rollout, Avon said it remains committed to updating IT infrastructure and improving systems for its representatives. 
  • It’s Magic!

    It’s Magic!

    Melissa Meisel, Associate Editor||March 20, 2017
    Argan oil-infused ‘Moroccan’ lip care brand jumps from WholeFoods into CVS.

  • On the Cutler Edge

    On the Cutler Edge

    Melissa Meisel, Associate Editor||March 13, 2017
    Top brand source at Redken forecasts up-to-the-minute hair trends.

  • Take The Hint

    Take The Hint

    Christine Esposito, Associate Editor||March 13, 2017
    Water brand forays into sun protection by capitalizing on scent and experience.

  • Supply-Side Innovations

    Supply-Side Innovations

    Tom Branna, Editorial Director||March 1, 2017
    Raw material suppliers roll up their sleeves and roll out their new products for the global cleaning industry.

  • New Faces in Familiar Places

    New Faces in Familiar Places

    Tom Branna, Editorial Director||March 1, 2017
    The American Cleaning Institute officially welcomed its new president.

  • Special Delivery

    Special Delivery

    Tom Branna, Editorial Director||March 1, 2017
    UV protection is important, but what good is that sunscreen if consumers won’t apply it?