Avon is to move its headquarters from New York to the UK “over time” as part of its turnaround strategy.
The cosmetics giant, which currently has 28,300 employees worldwide will be making 2,500 jobs cuts. Information has not yet been given as to which jobs will be lost.
The move comes as part of a three-year turnaround plan which was first revealed in January. While Avon‘s journey across the Atlantic will cost it $60m (£42m) before tax, it aims to reach up to $70m annual savings by 2017.
“With the recent completion of the sale of the North American business, our commercial operations are now fully outside of the United States, allowing us to dramatically rethink our operating model,” said Sheri McCoy, Avon’s Chief Executive.
“The actions we are taking today will bring our corporate and commercial businesses closer together, which will drive efficiencies, improve operational effectiveness and deliver significant cost savings”.
Avon‘s sales within the US and South America have struggled in recent years due to increasing competition from similar etailers.
The door-to-door beauty retailer will continue to operate its research and development work in Suffern and Rye, New York and will maintain its place on the New York Stock Exchange.