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Here's Why Avon (AVP) Stock is Down Today

On Tuesday, shares of beauty manufacturer Avon Products Inc AVP are down almost 8% in late-morning trading after the company announced it is moving its headquarters to the United Kingdom from New York City, as well as cutting about 2,500 jobs in multiple areas.

The company said it expects to save $50 million in 2106 from payroll cuts and the closure of open positions; beginning in 2017, it expects to save roughly $65 million-$70 million per year.

"Today, we are taking another important step forward in the execution of Avon's transformation plan. With the recent completion of the sale of the North American business [to private equity firm Cerebus], our commercial operations are now fully outside of the United States, allowing us to dramatically rethink our operating model," said Sheri McCoy, Chief Executive Officer, in a company release. "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 also said it would keep offices in the cities of Suffern, NY and Rye, NY, and will continue to be incorporated in New York as well as trade on the NYSE under its current ticker symbol “AVP.”

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