Avon Products moving to the U.K., shedding 2,500 jobs

Avon Products moving to the U.K., shedding 2,500 jobsA sampling of Avon products from a 2002 file photo(Photo: Associated Press)Avon Products, the maker of women’s cosmetics and beauty products, said Monday that it moving its operational headquarters from New York to the United Kingdom and will shed 2,500 jobs.The move is not considered a tax inversion and that the company will still be traded on the New York Stock Exchange, said a spokeswoman, Radina Russell.Avon said its in statement that the primary motivation is that it has “core enterprise functions” in the U.K. with “direct connections to operations throughout the world.”The announcement comes two weeks after 130-year-old Avon completed the spin off of its troubled North American business into a privately held company under the control of a private equity firm, Cerberus Capital Management. Avon still has a 20% stake in the private New Avon LLC.”With the recent completion of the sale of the North American business, our commercial operations are now fully outside the United States, allowing us to dramatically rethink our operational model,” said CEO Sheri McCoy in a statement.Avon Products, which has operations around the world with Brazil as its largest market, said in a statement that it will “reduct corporate infrastructure” as it makes the transition to the U.K. It said, however, that will maintain its facilities in Suffern and Rye, N.Y.The company will take charges related to the move of $60 million in the first quarter, mostly due to employee costs. It says the job reductions will include both filled and unfilled position, and that it expects a lowered headcount of 1,700, resulting in annual pre-tax savings of $65 million to $70 million starting in 2017.

Read More >