Avon to reduce global IT headcount

Thu Jan 7, 2016 5:58pm EST
 
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(Reuters) - Beauty products maker Avon Products Inc (AVP.N: Quote) said it would cut some global IT jobs after hiring Hewlett Packard Enterprise Co (HPE.N: Quote) to run some of its technology operations.

Avon, which expects the program to be completed by the end of 2016, did not specify how many employees would be affected. (1.usa.gov/1UAkPwe)

The company said in a filing it expects pre-tax savings of $10 million-$15 million annually, beginning 2019.

Avon, which in December sold the majority of its North American business to Cerberus Capital, said it expected to record a charge of about $30 million.

Hewlett Packard will operate Avon's IT infrastructure in four areas, offering data center services, network management among other services.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

 
The Avon Products headquarters is seen in midtown Manhattan area of New York, June 21, 2013. REUTERS/Brendan McDermid