Avon Announces Further Steps in Support of Company's Turnaround

Avon Products, Inc. AVP today announced additional actions as part of the company's ongoing turnaround efforts to return Avon to sustainable, profitable growth. These steps are related to continued efforts to right size the cost structure, improve organizational effectiveness, streamline processes to gain efficiencies and reduce cost across the organization. These actions are primarily global headcount reductions of approximately 600 positions, largely in the corporate organization and North America business unit. Total charges to be recorded as a result of these actions are expected to be approximately $45 million to $50 million before taxes, with approximately $40 million expected to be recorded in the second quarter of 2014. The company expects these restructuring actions to result in annualized savings of approximately $50 million to $55 million before taxes as part of the $400 million Cost Savings Initiative. In connection with the restructuring actions approved to-date associated with the $400 million Cost Savings Initiative, we expect to realize annualized before-tax savings of approximately $240 million to $250 million.