Revlon (NYSE: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.
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.
Continue Reading Below
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.