Another makeover for Avon
Another day, another makeover at Avon (AVP). The cosmetics firm said Tuesday it will cut 2,400 jobs in the latest phase of what has become a three-year-long facelift. The move comes as CEO Andrea Jung struggles to regain the magic that made the stock such a highflier early in her tenure. As amply noted in the pages of Fortune, Avon shares more than tripled between Jung’s 1999 appointment as chief executive and 2004. Since then, the stock has gone nowhere amid mounting competition from the likes of Procter & Gamble (PG) and slowing growth rates industrywide. Now, in the wake of thousands of job cuts and countless streamlining memos, the company pledges to be even nimbler - but to what effect? That’s not clear. Says Vice Chairman Charles Cramb, “Continuing transformation as part of a turnaround mentality is now a ‘way of life’ for Avon.” We’ll say.
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