Avon stock is soaring on Thursday after announcing some changes for the company.
An announcement from Avon (NYSE:AVP) late on Wednesday includes details about upcoming changes that the company is planning to initiate. These changes are part of an effort to improve its operating efficiency and reduce its portfolio complexity.
Among these changes is a reduction in headcount at Avon. The company says that it will be reducing its total workforce by 10%. It plans to complete this change by the end of 2019. AVP is expecting this to result in annual savings of $97 million. It is also expecting charges reaching $100 million in connection to these layoffs.
The other bit of news that has AVON stock moving today are plans for an inventory reduction and write-off. This will be a 15% reduction that will result in a one-time expense of $88 million for the company. AVP says that this change will allow it to better focus on high-selling products than a its current operations allow.
“This reset is an opportunity for us to sharpen our portfolio and concentrate on products that are important and relevant to our customer,” Jan Zijderveld, CEO of Avon, said in a statement. “This represents an opportunity not just for Avon, but for Her to accelerate her earnings through a more focused portfolio, experience better service, and deliver high quality, modern products she can be proud of.”
AVP stock was up 21% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
