The trend for Avon is still in a rapidly growing downward spiral. Avon Canada said Monday that it will eliminate most jobs at its distribution centre in Pointe-Claire.
Company spokeswoman Elizabeth Munro declined to specify the number of positions cut. She said that the company would make no statement beyond the press release issued in late afternoon.
A source told the Montreal Gazette that Avon employees were told Monday that most jobs would be gone by April while some jobs would remain until July to allow for training of new personnel. The source, who did not want to be identified, said about 600 jobs would disappear at the Pointe-Claire facility.
Munro said the 600 jobs figure was “way inflated,” but would not provide further details about job losses or how the process would roll out.
The firm said it will outsource the jobs to Genco, a privately-held U.S.-based company that describes itself as a leading “product lifecycle and reverse logistics” solutions provider.
Avon’s announcement made it clear that the Genco jobs will not be permanent. The new jobs under Genco, it appears, will be temporary and respond to demand in any given two-week cycle.
Genco “can support Avon’s supply chain needs by expanding and contracting to meet the demands of Avon’s bi-weekly selling cycle,” the company statement said.
Genco’s Montreal North offices have recently shut down and the phone number is no longer in service.
Ryan Kelly, Genco senior vice-president for marketing and strategy for its Pittsburgh-based parent company, did not return calls to his office made late Monday.
One Avon sales representative for the cosmetics firm that sells makeup, lotions, skin creams and other health and beauty products, said there “definitely have been cuts” to staff, but did not know the number or whether other departments are affected.
Sales reps are affiliated to Avon but are independent workers, not employees.
A Montreal Gazette reporter at the Pointe-Claire centre was escorted off the property by security.
Avon said it cut its staff “in order to remain competitive and reduce costs.”
“Utilizing the services of a third party is expected to simplify operations and reduce costs, while freeing up resources to drive top-line growth,” the company said.
The affected workers can apply for a job with Genco, the company added.
Avon said it would provide “outplacement services, severance packages and access to employee assistance” — but gave no details.
originally reported by the montrealgazette.com