Revlon Inc. is reorganizing its manufacturing operations for better efficiency. As part of this effort, the company is closing its manufacturing facilities in France and Maryland and moving manufacturing from those facilities to other Revlon facilities and third parties; rightsizing its French and Italian organizations; and realigning its operations in Latin America, including consolidating Latin America and Canada into a single region.
These actions will result in eliminating approximately 250 positions. Some of the actions are subject to consultations with employees, works councils or unions, and government authorities. Restructuring and related charges, which will be recognized in the third quarter of 2012, are expected to be approximately US $25 million comprised of US $19 million in employee-related costs and US $6 million in other costs including asset write-offs. Of the total charge of US $25 million, US $23 million will be cash that will be paid out over the next 12 months. Annualized cost reductions are expected to be approximately US $10 million, US $9 million of which is expected to benefit 2013.
"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," noted Alan T. Ennis, the company's president and CEO, in a company press release.
