Avon to Cut More Jobs as It Seeks to Reduce Costs


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NEW YORK (TheStreet) -- Avon Products announced it will eliminate 600 more jobs as it tries to cut expenses and restore profitability.

VIDEO TRANSCRIPT:

Avon Products (AVP) said it will cut another 600 jobs, on top of the 650 job cuts the company announced in December, in an attempt to cut expenses.

The cuts, most of which will be in its corporate organization and North American business, are part of a restructuring program to save $400 million by 2016.

Avon said it plans to save $50 million to $55 million a year as a result.  The company also said it expects to post a pretax charge of $45 million to $50 million, with $40 million of that charge recorded in the current quarter.

Avon has been struggling to restore profitability, reporting losses in five of the last six quarters. But the company's problems go beyond the losses, however. Last month, Avon said it would pay $135 million to settle U.S. federal investigations into alleged bribery in China and other countries.

In New York, I'm Brittany Umar for TheStreet.

-- Written by Brittany Umar in New York.

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