Avon May Face $15 Million in Charges for Layoffs, Restructuring

Avon Products Inc. said that its board approved the termination of certain employees, and said it anticipates charges of up to $15 million for the layoffs and other reorganization initiatives. In a filing with the Securities and Exchange Commission, Avon said about $11 million to $14 million in charges will be for employee-related costs and about $1 million will be for other costs. Last November, the company said it would undergo a multiyear restructuring effort. It said that the plan involved steep job cuts, eliminating management layers to better react to market trends, realigning manufacturing centers and outsourcing work to countries where labor costs are cheaper.