Avon to shift its head office to Britain

Multibillion-dollar beauty firm Avon revealed plans to shift its headquarters to the UK from the US this week.

The company, which sells its products through a direct marketing scheme in 70 countries, said the move would help it maximise direct connections to its global operations from a base in Britain, despite the risk of Brexit.

It was part of Avon's three year turnaround plan. after four years of steadily declining sales. The declines had led to the company recently selling most of its operations in North America to private investment vehicle Cerberus Capital.

Avon confirmed it would axe 2,500 positions as part of the move, out of a global workforce of 28,300. It offered no detail on the level of investment or job creation in the UK.

"We are taking another important step forward in the execution of Avon's transformation plan," said chief executive Sheryl McCoy.

"With the recent completion of the sale of the North American business, out commercial operations are now fully outside the United States, allowing us to dramatically rethink our operating model," she added.

McCoy said the move would bring its corporate and commercial businesses closer together, drive efficiencies, improve operational effectiveness, and deliver significant cost savings.

Shares in Avon were up 4.29% at close in New York on Monday, right after the announcement. They were down 0.23% ahead of the opening bell on Tuesday.