The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Chemicals And Pharamceuticals Manufacture Of Chemicals And Chemical Products 20.42 - Manufacture of perfumes and toilet preparations
2,500 jobs Number of planned job losses
Announcement Date
14 March 2016
Employment effect (start)
15 March 2016
Foreseen end date
31 December 2016
Description
Cosmetics manufacturer and retailer Avon has announced that it will cut around 2,500 jobs worldwide, as part of a relocation of its head office from New York to London. This is part of a strategy to improve the company's financial performance, which has undergone four years of quarterly revenue decline and seen its stock value drop by forty percent over the last twelve months. Avon has announced cost cuts of $350 million ($70 million of which will fall this year) as part of this strategic recovery plan. The job cuts will affect around 7% of Avon's work force, and 1,700 of the 2,500 losses will occur this year. This is part of a wider restructuring, as Avon has sold its North American operations to its biggest investor, private equity firm Cerberus Capital, who will continue to invest and develop the North American operations. Avon's research centres in New York will be unaffected, and the company will continue to trade on the New York Stock Exchange.
Sources
14 March 2016: Wall Street Journal
14 March 2016: Reuters
Citation
Eurofound (2016), Avon, Relocation in World, factsheet number 86764, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86764.
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