When contacted, the beauty manufacturer could not confirm the number of jobs that were eliminated, but external communications manager Lindsay Fox, tells CosmeticsDesign.com USA that it will be the “majority.”
She explains that the move has been made by Avon Canada “in order to remain competitive and reduce costs.”
Third party help
A company statement on the announcement says that it has enlisted the services of Genco, a third party logistics provider to support Avon’s supply chain needs by expanding and contracting to meet the demands of Avon’s bi-weekly selling cycle.
Utilizing the services of a third party is expected to simplify operations and reduce costs, while freeing up resources to drive top-line growth.
“As a consequence, the majority of Avon’s Distribution Centre positions have been eliminated,” says Fox. The press release explains that ‘impacted associates’ will have the opportunity to apply for a position with Genco.
In addition, Avon also says it will offer further support to help those affected make a successful transition, “by providing outplacement services, severance packages and access to employee assistance.”
Cost-saving initiative
Avon is continuing to roll out a number of cost-cutting initiative as its company restructuring goes on.
Announced back in 2012, the cost saving initiative aims to trim $400 million in spending for Avon by 2016.
Last year this saw 600 jobs cut in the corporate organization and North America business unit, following on from other cuts previously.