Avon recently announced additional plans concerning its three-year transformation effort, the biggest of which includes relocating the company to the UK and cutting 2,500 jobs. The change also includes revising its operating model to ensure that all markets have consistent roles, responsibilities and processes. Further streamlining of Avon’s corporate functions to align with the current and future needs of the business looks to reduce corporate infrastructure and will transition, over time, the location of Avon’s corporate headquarters to the United Kingdom, where it has significant commercial operations.

As a result of these operating model changes, Avon will reduce its headcount by approximately 2,500 positions across multiple geographies. This includes both filled and open positions. Avon expects to record total charges associated with these actions of approximately $60 million before taxes in the first quarter of 2016. These charges are expected to be comprised primarily of employee-related costs. It expects to realize pre-tax savings of approximately $30 million in 2016 associated with an approximate 1,700 headcount reduction, and expects to achieve annualized pre-tax savings of approximately $65 million to $70 million beginning in 2017.

Additionally, Avon expects to realize annualized pre-tax savings of approximately $20 million in 2016 related to the elimination of the open positions. Avon will maintain its current facilities in Suffern, NY and Rye, NY. The Company will also continue to be incorporated in New York and trade on the New York Stock Exchange under the symbol AVP.

As announced reported, Avon separated its North American business into a privately-held company in which Avon maintains a minority interest. The North American business is not impacted by any of these recent actions.