Avon Products Inc. said Wednesday it would cut 650 jobs due to an order management system that failed to perform well during a test run in Canada.
The company said despite disappointment in the new system, retreating from its use in Canada would only cause more problems. In its pilot run the system has already caused "significant business disruptions in that market," Avon said.
The so-called "service model transformation," or SMT, was expected to help representatives place orders. It was one of several initiatives undertaken by the company to streamline the business, MarketWatch reported Wednesday.
The company had already announced early this year it would cut 400 jobs.
The new job cuts would result in charges of $35 million to $45 million, the company said.