Cosmetics group Avon cuts 2,300 jobs

About 2,300 jobs are to be cut in another round of lay-offs at the London-based cosmetics group Avon Products.

The company said on Wednesday it planned to reduce its global workforce by a tenth this year, reducing expenses by almost $100m.

Jan Zijderveld, chief executive, said in a statement: “Decisions like these are always difficult. However, we must take the actions necessary to improve our operations and strengthen our ability to continue investing in our transformation initiatives and fuel our future growth.

“I would like to express my sincere gratitude to the talented employees affected by this restructuring, and we will do our utmost to ensure everyone is treated with fairness and respect.”

Avon, which employed about 25,000 people a year ago, reduced its headcount by 8 per cent in 2018. The statement did not disclose which parts of the business would be affected by the latest cuts. Avon is listed in New York but headquartered in west London.

The company, known for its doorstep Avon Lady sellers, has lost to rivals in the booming yet rapidly changing beauty sector.

Savvier operators have outsmarted legacy make-up companies using social media and celebrity endorsements. Companies including LVMH-owned Sephora have grabbed market while Avon has been hit by a multiyear slide in revenues.

Avon’s market capitalisation has collapsed to $823m from a high of almost $22bn in 2004. Shares rose 4 per cent after the announcement on Wednesday. The company has been seeking to adapt its business to the age of ecommerce, giving its sales reps digital training.