Avon to quit South Korea & Vietnam

US direct sales giant Avon is pulling out of South Korea and Vietnam as part of its cost-saving strategy.

US direct sales giant Avon is pulling out of South Korea and Vietnam as part of its cost-saving strategy.

The company says that the move is aimed at concentrating resources on high priority markets. It expects to have exited these emerging markets before the end of 2013.

Initial steps of Avon's crucial cost-savings initiative - announced earlier this year with a target of $400m saved by the end of 2015 -  included a targeted global headcount reduction of approximately 1,500 positions.

"In order to turn around the business, we are focused on driving top-line growth and aggressively managing our cost base," said Sheri McCoy, CEO, Avon Products, Inc. "The decisions outlined today are necessary to stabilise the company and begin the process of returning Avon to sustainable growth."

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