Revlon will cut 250 jobs, restructure operations
NEW YORK (AP) — Makeup company Revlon Inc. said Wednesday it is cutting 250 jobs, or about 5 percent of its workforce, as it exits two plants in a broad restructuring aimed at cutting costs.
Revlon, like other consumer products makers, has been facing high raw material costs, weakness in Europe and a slowdown in China.
In its most recent quarter revenue rose 1.7 percent, as higher revenue in the U.S. and Latin America was offset by a 4 percent drop in Asia Pacific and a 15 percent drop in Europe, the Middle East and Africa.
New York-based Revlon, whose brands include Almay, Mitchum and its namesake, said it will close its manufacturing plant in France and leave its leased manufacturing plant in Maryland and move manufacturing to other plants and third parties.
It will also restructure operations in France and Italy and realign its operations in Latin America, including consolidating Latin America and Canada into one region.
The cosmetics company employs about 5,200 people overall.
Revlon will take third-quarter charges of $25 million, including $19 million in employee-related costs and $6 million in other costs including asset write-offs.
Revlon expects to save $10 million annually from the moves, including $9 million in 2013.
Its shares fell 21 cents, or 1.6 percent, to $12.98 in morning trading. They have fallen 28 percent since hitting 52-week high of $17.99 in mid-April.