Revlon Inc. says it is cutting 250 jobs, or about 5 percent of its workforce, and is closing two plants in a broad restructuring as it seeks to cut costs.
The job cuts will help the company record a $25 million third-quarter charge in a restructuring meant to curb its costs by $10 million annually.
Revlon, whose brands include Almay, Mitchum and its namesake, says it will close its manufacturing plant in France and its leased manufacturing plant in Maryland and move manufacturing to other plants and third parties.
While Revlon didn't specify where the job cuts will take place, it did mention it is reducing its French and Italian organizations. As of Dec. 31, the company employed about 5,200 people.
Of the $25 million charge, $19 million will be channeled to employee-related costs and $6 million in other costs including asset write-offs.
Chief Executive Alan T. Ennis said the measures will allow Revlon to continue maintaining highly competitive margins.
In July, Revlon said its second-quarter net sales for Europe, the Middle East and Africa fell 15%, or 3.5% on a currency neutral basis. Sales fell for fragrances in the U.K. and its namesake color cosmetics in France and Italy.
However in Latin America sales jumped 23%, or 28% on a currency neutral basis. Sales for the region benefited from higher selling prices in Venezuela and Argentina, reflecting market conditions and inflation.
For the quarter, profits surged 71% as higher revenue masked increasing raw-materials costs.
Revlon expects to save $10 million annually from the moves, including $9 million in 2013.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
