Avon cuts 650 jobs and freezes technology overhaul Avon, the troubled cosmetics company, said it would cut 650 jobs and freeze a technology overhaul that has gone badly as its turnround efforts continue. The door-to-door cosmetics seller said the job cuts, which followed 1,900 previous lay-offs, were the latest part of an initiative to cut $400m in costs by 2016. Sheri McCoy, chief executive, is also halting the roll out of new software technology - initiated by her predecessor Andrea Jung - that was meant to improve communication between the company and its "Avon lady" sellers. Avon shares fell by 4.2 per cent to $17.08 in response to the news on Wednesday, hitting their lowest level since February of this year. Ms McCoy was hired in 2012 to end several years of falling sales and profits at the New York-based company, which has been roiled by a series of operational and legal troubles in the US and overseas. At the end of last year Avon employed 39,100 people, a number that did not include its door-to-door sales representatives, who work as independent contractors. Avon said it would record a charge of $35m to $45m mainly related to the job cuts. It also said it would record a non-cash impairment charge of $100m to $125m reflecting the writedown of the software, which included an upgrade of its order management system. Avon said that when it had tested the software in Canada it caused "significant business disruption in that market, and did not show a clear return on investment." Since 2008 the US authorities have been investigating the cosmetics seller over possible bribery in China and elsewhere. In October, Avon warned that a potential settlement to resolve the corruption allegations could have an adverse impact on its business.