Avon cuts back US operations

By Deanna Utroske contact

- Last updated on GMT

Avon cuts back US operations
The direct-sales beauty, personal care, and wellness company announced plans this week to streamline operations in New York State. Avon is closing offices and reducing staff, all in an effort to “fuel growth,” according to company executives.

Despite being founded here in the States more than 125 years ago, the company’s business in North America has been struggling for sometime, falling off the S&P 500 in March of 2015​, putting this region’s business in the hands of investors in 2016​, and moving corporate headquarters to the UK​ at the start of 2017.

And that’s not all. Company leadership has turned over​, a new wellness brand​ has been launched, and the iconic Avon catalog has gone digital​.

With headquarters now in the UK Avon is focusing on the overall global health of the company and, accordingly, adjusting investments regionally to remain competitive.  

Planning ahead

"With Avon's international focus, simplifying our U.S. operations is a logical next step in providing fuel for growth, and a further example of our commitment to improve Avon's performance and become more fit for purpose,” ​explains Jan Zijderveld, Avon’s current CEO, in a media release about the decision to scale back.

"While decisions like these that impact our employees are never easy,” ​he adds, “we will manage the transition in a respectful and sensitive manner.”

And Zijderveld takes care to “thank all of our colleagues for their dedication to our growth plans to turnaround Avon.”

Less in the US

The company’s media release (coming out of London) outlines the changes being made in New York. US operations will be consolidated at the Avon site in Suffern, New York. “This,” ​according to the release, “will include the sale of the Company's offices in Rye, New York, which is projected to be completed in 2019.”

Along with the consolidation comes a reduction in staff. Avon plans to cut about 100 “positions” ​from it work force, a figure the Avon release describes as “consistent with the Company's previous restructuring disclosures.”

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DeannaUtroskeEditor

Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.

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