Avon has begun its next round of layoffs. R&D announced its cuts before the July 4th holiday.
I can’t share exact numbers. However, after all is said and done, hundreds will be let go across Avon’s North American operations.
Earlier this year, shareholders had the opportunity to vote on a proposed limit on “golden parachutes” for Avon execs. Avon’s board implored shareholders to vote against any such limits. The board’s reasoning was that “golden parachutes” will provide executives an incentive to get a good price for the company, should a buyout happen.
Pretty absurd, right? Paying execs huge annual salaries isn't enough to motivate them to actually do a good job and have a conscience. Throw in the prospect of looting the company as they depart, and only then will they try to add value to the business. What a joke. The real kicker is that the shareholders voted down the resolution to limit “golden parachutes.”
The execs see the writing on the wall. Avon’s business in the U.S. has been dead for quite some time and will not recover. Its overseas operations can be profitable, but only if they are divested from U.S. headquarters.
Avon will not survive in its current incarnation. Its business model is outdated. Its incorporation in the U.S. only hurts profits. The good ship Avon is sinking. It will be towed to shore, only to be sold for scrap.