NEW YORK — To keep pace with its cranked up innovation pipeline and to trim costs, Revlon will reorganize its marketing group in a move that will eliminate 2.5 percent of its global workforce.
The company announced Wednesday that it would consolidate its marketing operations, which include creative and brand groups and customer marketing — previously considered a sales function. The newly integrated marketing group will be co-led by the company’s executive vice president and chief marketing officer, Stephanie Klein Peponis, and Rochelle Udell, executive vice president and chief creative officer for Revlon.
The company expects to take a $10 million charge related to severance and additional expenses, which will primarily impact Revlon’s first quarter results. The firm expects the cost-cutting effort to generate $15 million, most of which will benefit 2006.
The bulk of the 165 job cuts, which include 90 U.S. employees, will come from the company’s marketing, sales and North American finance functions, said a company spokeswoman, who added that the cuts do not include any senior leadership positions. The realignment is designed to speed decision making across its businesses, which currently include cosmetics, beauty tools, hair care and its newly created prestige fragrance division.