NEW YORK (AP) — Avon said Wednesday that it plans to eliminate about 650 jobs as part of its ongoing plan cut costs by $400 million.
The New York-based beauty products company said in a regulatory filing that it expects to record total pretax charges related to the moves of about $35 million to $45 million. About $35 million of the charges are expected to come in the fourth quarter of this year, with the rest expected coming before the end of 2014, Avon said.
The cuts are expected to be largely completed by before the end of 2014. The company expects the moves to save it about $40 million to $45 million per year on a pre-tax basis.
Avon also said in the filing that it's halting the roll out of improvements to its order management system. As a result, the Company expects to record a pre-tax non-cash charge of about $100 million to $125 million in the fourth quarter of 2013.
Shares of Avon Products Inc. fell 72 cents, or 4 percent, to $17.11 in morning trading. Its shares are up 24 percent so far in 2013.