Revlon plans to cut 250 jobs and discontinue its recently launched Vital Radiance cosmetics line developed for older women, in attempts to return the company to profitability. According to reports, these measures were announced one week after the company let Jack Stahl, president and chief executive, go and replaced him with David L. Kennedy, the company's CFO.
Revlon reportedly has been struggling with debt and increased competition from rivals L'Oreal S.A.'s Maybelline and Procter & Gamble Co.'s Cover Girl. The company's launch of Vital Radiance was in hopes to reverse its fortune, but reports claim results for the brand were disappointing. Revlon plans to increase its focus on its Revlon and Almay businesses but reportedly will not be selling any brands.
Also in reports, the company announced it expects losses in the third quarter and for the year--its shares fell 12% to close at US$1.09 on the New York Stock Exchange. That is at the low end of its 52-week range of 76 cents to $3.95.
"We are moving forward with a clear focus on leveraging the tremendous equity of our established brands--particularly Revlon, and without the burden of the operating loss we anticipated from Vital Radiance in 2007," said Kennedy in a press statement.