Dear All,

Our profits for the last year were almost flat, and the share price dropped to 50% of the peak. With
the current skillset and workforce, we will not be able to achieve the organization’s goal in the
coming years. Therefore, it is high time to increase the organisation's efficiency by reducing the
workforce.

The leading causes of sluggish performance are slow decision-making, outdated skillset, and
inefficient operations. To make the organization efficient, we have planned to reduce the hierarchy
levels from 15 to 7 by reducing one-third of the employees across the senior and middle
management.

Layoffs are always painful, but such steps become necessary in running the organization smoothly.
You all have always toiled very hard to make the organization successful; by working countless
nights; sacrificing your personal lives to ensure the timely completion of the assigned tasks. You all
are valuable assets to the organization, and there is no doubt that wherever you will work, you will
bring laurels to that organization. It is sad, but this is the last resort to keep our organization running.

Avon respects your hard-core commitment level and understands the pain behind separation. The
entire restructuring news has created a lot of apprehensions, worries, fears etc., which are apparent.
Still, we ensure you that the restructuring process will be free from any bias, and the separation
process will be very smooth and fast. We will provide you with sufficient time to lookout for a new
job and help you in your job hunt. We will also provide you with the best possible compensation to
cater to your next few month’s needs.

We are hopeful that all of you will support us in carrying out this most challenging job very smoothly.
The human resource team will connect with the concerned employees later and share the detailed
compensation and timelines. Meanwhile, please be positive and focused on the work.

Thanks & Regards,

Andrea Jung

Chief Executive Officer

Avon Products Ltd