Revlon announces actions to improve operating efficiency
NEW YORK — Revlon announced on Wednesday that to further improve operating efficiency, it is taking steps that will result in the elimination of 250 jobs.
The beauty brand is exiting its owned manufacturing facility in France and its leased manufacturing facility in Maryland, moving manufacturing from those facilities to other Revlon facilities and third parties; rightsizing its French and Italian organizations; and realigning its operations in Latin America, including consolidating Latin America and Canada into a single region. Certain of the actions are subject to consultations with employees, works councils or unions, and government authorities.
These moves will result in eliminating roughly 250 positions. Restructuring and related charges, which will be recognized in third quarter 2012, are expected to be approximately $25 million comprised of $19 million in employee-related costs and $6 million in other costs including asset write-offs. Of the total charge of $25 million, $23 million will be cash that will be paid out over the next 12 months. Annualized cost reductions are expected to be approximately $10 million, $9 million of which is expected to benefit 2013.
“Over the past three years we have successfully executed our strategy and are delivering on our strategic goal of profitably growing our business. These actions will enable us to continue to invest in the execution of our strategy while maintaining highly competitive margins,” Revlon president and CEO Alan Ennis said.