Revlon, Inc. announced new actions aimed to drive its operating efficiencies. Among these actions are:
- 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;
- right-sizing 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 actions will result in eliminating approximately 250 positions. Restructuring and related charges, which will be recognized in the third quarter of 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 twelve months. Annualized cost reductions are expected to be approximately $10 million, $9 million of which is expected to benefit 2013.
Revlon president and CEO Alan T. Ennis, stated, “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.”