Avon Restructuring Plan Includes Downsizing

Avon Products announced a multi-year restructuring effort as part of a major drive to fuel revenue growth and strengthen overall performance.

Avon said its restructuring initiatives will include: enhancement of organizational effectiveness, including efforts to flatten the organization and bring senior management closer to consumers through a substantial organization downsizing; implementation of a global manufacturing strategy through facilities realignment; additional supply chain efficiencies in the areas of procurement and distribution; and streamlining of transactional and other services through outsourcing and moves to low-cost countries.

The company said it expects that benefits from restructuring will help to fund a significant increase in consumer investment as well as improve the competitiveness of its direct selling opportunity. Advertising, market intelligence, consumer research and product innovation will be funded at higher levels, with advertising spend projected to more than double by 2008. The company projects these actions are expected to improve revenue growth prospects beginning in 2007. More information: www.avoncompany.com.