REVLON RESTRUCTURING CLAIMS 280 JOBS
Byline: Laura Klepacki
NEW YORK — In an expected move to streamline operations at the troubled cosmetics firm, Revlon will cut approximately 200 employees from its U.S. workforce and eliminate another 80 unfilled positions, the company said Wednesday.
Reports of imminent staff cuts have been circulating over the past two weeks as workers awaited the arrival of the company’s new president and chief executive, Jeffrey Nugent, from Neutrogena, who officially took over Sunday.
The reductions will come primarily at the firm’s New York headquarters, representing 11 percent of the staff there. Additionally, 6 percent of Revlon’s New Jersey-based staff, including its research and development center in Edison, will also be affected. The cuts will be from departments across the board and effective by Dec. 31, said a spokesman.
In recent weeks, with sales declines and a plummeting stock price, Revlon’s president and ceo George Fellows resigned, and last week its second-ranking executive, Kathy Dwyer, formerly president of Revlon Consumer Products, also left.
A successor to Dwyer has not been named.
Beginning with the job cuts disclosed Wednesday, Revlon is resuming a restructuring plan announced last fall, which had been on hold while the company was put up for sale, said the spokesman.
Ronald O. Perelman, Revlon chairman and majority owner, pulled the company off the block in October and decided instead to sell its Latin American and professional businesses to help pay down its debt.
Part of the previously announced plan also included the elimination of some 1,000 international jobs with the closing of three factories. Those closings had also been held up, but a shakeup is expected to resume. Joseph Heid, former president of Revlon International, left the company in November.
Last week, Heid was named chairman, president and ceo of Esprit de Corp., the San Francisco-based junior sportswear firm.
Sources said Revlon was holding staff meetings Tuesday and Wednesday in New York and that the job cuts could go even higher.
On Wednesday, Revlon stock closed at 9 1/8, down 1/4, on the New York Stock Exchange.