The cosmetics company would not say exactly how many jobs will be eliminated but in a statement Avon Canada said it will slash the majority of jobs at its distribution centre, located next to the company's Canadian head office.
The statement says Avon is outsourcing the jobs to Genco, a supply chain management company based in Chicago.
“In order to remain competitive and reduce costs, it has enlisted the services of Genco, a third party logistics provider who can support Avon’s supply chain needs by expanding and contracting to meet the demands of Avon’s bi-weekly selling cycle,” the statement said.
Avon Products Inc. is the world's largest direct seller of cosmetics, but its sales have been steadily dropping.
Last summer, Avon said it was trying to trim $400 million US in spending by 2016 and said that the latest cuts should contribute $50 million to $55 million in annual savings.
Avon Canada's statement goes on to say that current employees will be given a chance to reapply for a job.
“Impacted associates will have the opportunity to apply for a position with Genco.”
On Tuesday morning, Genco posted job listings on its website for forklift operators, warehouse workers and supervisors for the Avon facility in Pointe-Claire.
If rehired, employees will likely earn less money and lose job stability and benefits.
Both Avon and Genco refused to comment further on the cuts.