Direct seller and beauty company Avon has confirmed it will no longer operate in Vietnam and South Korea.

The company said exiting the two markets will allow it to concentrate its resources in higher priority countries, part of a broader program which will save US$400 million by the end of 2015.

Along with its withdrawal from the two countries, the company says, it will also reduce its headcount of approximately 1500.

“These actions are aimed at concentrating resources on high priority markets and activities and boosting efficiencies, and are expected to be largely completed before the end of 2013,” said the company in a statement.

Avon anticipates that these steps will account for about 20 per cent of the total targeted savings.

“The decisions are necessary to stabilise the company and begin the process of returning Avon to sustainable growth,” said its CEO Sheri McCoy.

GB