Avon excluded Brazil of its adjustment plan
DCI - 02/26/2009
Last week North-American cosmetics' company Avon informed it will increase its restructuring program, freezing salaries and procurements, and that it will increase the hiring of sales people, since with a more expensive US Dollar the products become more expensive for foreign clients. The measures will be taken in countries affected by the appreciation of the US Dollar. Throughout the next four years the program will affect between 2,500 to 3,000 jobs all over the world. Sought by DCI, Avon in Brazil reaffirmed the investments will be kept in the Country and there is no news about cuts, even because the 3 thousand layoffs will take place throughout four years, The measure will initially cost between US$ 300 and US$ 400 million and the changes start in the second half of the year. Avon expects its restructuring results in annual savings US$ 900 million. The company has already raised the prices, cut jobs, ended some operations and transferred production to countries that offered tax incentives. Charles Cramb, International Vice-President of Avon, said on a notice that the company will save US$ 1.1 billion when the restructuring is over.