Revlon to Chop 250 Jobs in $25M Restructuring
Cosmetic and hair products maker Revlon (NYSE:REV) revealed restructuring plans on Wednesday that will consolidate the company’s operations by shutting facilities and axing 250 jobs.
The New York-based beauty company said it will exit its owned manufacturing facility in France and leased plant in Maryland and move their production to other Revlon facilities and third parties.
It also plans to realign operations in Latin America, including consolidating Latin America and Canada into a single region, in an effort to improve operational efficiency.
“These actions will enable us to continue to invest in the execution of our strategy while maintaining highly competitive margins," Revlon CEO Alan Ennis said in a statement.
The restructuring that will eliminate 250 positions will cost about $25 million – including $19 million in employee-related and severance costs – which will be incurred in the third quarter of this year.
Revlon said annualized cost savings from the changes are expected to be $10 million, about $9 million of which is expected to benefit 2013.
Shares of Revlon opened Wednesday’s session slightly higher but are still down more than 11% from January.
In July, the company reported a modest improvement in second-quarter sales to $357.1 million from $351.2 million a year ago, which topped average analyst estimates of $346.9 million.