Avon to Cut 1,200 Jobs

Avon Products(AVP Quote) is slashing 1,200 corporate positions by 2013 as part of its plan to cut costs as consumers pare down on cosmetic purchases.

The restructuring will result in a charge of about $90 million, or 19 cents a share in the second quarter, including a one-time tax charge of 5 cents and costs from a previous restructuring. Avon is set to release its second-quarter results on July 30.

"When fully implemented, the initiatives approved to date reflect almost half the costs to implement the 2009 restructuring program, and are expected to generate approximately 60 percent of the targeted annualized savings," said Charles Cramb, vice chairman, chief finance and strategy officer.

The company expects about $200 million in total annualized saving by 2012 to 2013. Shares in the company were trading hands on Wednesday at $28.79, down 3 cents from Tuesday's close.

On a related note, although Avon may be eliminating corporate jobs, the company has doubled its investment in recruitment advertising, to boost the number of representatives who sell its products. Avon had about 9 million sales representatives as of the end of the first quarter.