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

By ChinaFOXBusiness

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.

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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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