Revlon to Close Shop in China, Fire 1,100 People

By Jennifer Booton China FOXBusiness

Revlon (REV) revealed plans on Tuesday to shut down its operations in China and lay off 1,100 people as part of a restructuring program designed to streamline operations.  

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The New York-based cosmetics maker, which gets 2% of its global sales from the Chinese unit, said severance and other costs will lead to $22 million in pre-tax charges.

The layoffs, including 940 beauty advisors retained indirectly through a third-party agency, are expected to save Revlon $11 million annually, starting with $8 million in 2014.

Revlon, which returned to a third-quarter profit in October despite a 2% decrease in sales, said the moves are unrelated to its $660 million purchase of Spanish solon operator The Colomer Group that closed in October.

Shares of Revlon, flat at $24.60 in recent trade, have gained close to 70% this year.

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