The Alberto-Culver Company announced a reorganization following its recent separation from Sally Beauty Holdings, Inc. into a separate, publicly-traded company.
"Alberto-Culver has always prided itself on being a lean and nimble organization, so the changes that were needed are not dramatic,” said V. James Marino, president and CEO, Alberto-Culber. “This represents a right-sizing, looking primarily at those areas that related to services we were maintaining in support of Sally and corporate activities that could be scaled back to match the needs of a smaller company."
As part of the reorganization, two marketing units will be combined into a single unit and some specific international services will be outsourced or combined into regional offices. Marino stated that all personnel impacted by the changes had been notified and that this reorganization and the financial charges related to it would be substantially completed by the end of the fiscal year 2007 second quarter. The company's worldwide workforce of approximately 3,800 will be reduced by approximately 90 as a result of the changes. The company expects to take restructuring charges of approximately $13 million and $3 million in its fiscal year 2007 first and second quarters, respectively, related to the reorganization.