Revlon to eliminate 400 jobs in restructuring

NEW YORK: Revlon Inc. said on Thursday it will cut 400 jobs worldwide to help cut annual costs by $30 million as the cosmetics company continues to grapple with a softening economy.

The restructuring will eliminate 325 current positions and 75 open jobs, Revlon said.

New York-based Revlon also said unfavorable currency fluctuations, pension expenses, and slowing growth in mass color cosmetics in the US will have a ``significant negative impact'' on sales and profit in the second quarter compared with year-ago results, when the company earned 39 cents per share on sales of $376.4 million.

``While the mass color cosmetics category in the US, according to ACNielsen, continues to grow, the rate of growth has started to slow, and retailers are carefully examining and optimizing inventory levels,'' Chief Executive Alan T. Ennis said in a statement.

Revlon will record $20 million in restructuring charges, including severance and other termination benefits, and $3 million for the consolidation of office facilities in New Jersey. About $17 million in charges will be recorded in the second quarter, with $3 million recognized in the second half of 2009.

The company has about 5,600 employees worldwide, according to Thomson.

In morning trading, Revlon shares fell 74 cents, or 12 per cent, to $5.21.