Cosmetic giant Revlon, Inc. is cutting 250 jobs, including eliminating its CMO and director of marketing posts and its dropping its Vital Radiance brand, a cosmetic line designed for older women, after “disappointing” sales, the company said.
The job cuts, which represent about 8% of Revlon’s workforce, include eliminating the titles of executive VP and CMO, held by Stephanie Klein Peponis, and executive VP and COO, held by Rochelle Udell. The brand marketing leadership team will now report to newly named president and CEO David Kennedy. The marketing team will oversee all elements of brand marketing, brand positioning and advertising, media and creative services, category development and other promotional activities.
In addition, Revlon is also eliminating the roles of executive VP and president of international held by Tom McGuire. The executives leading the company’s three geographic international regions will also report to Kennedy.
The job cuts and organizational changes will save New York City-based Revlon about $34 million each year, the company said. Dumping the Vital Radiance brand will cut full-year operating costs by $110 million, the company said. Revlon launched the brand in January to target women 50 and older.
The move, announced Monday, comes a week after Revlon named Kennedy its CEO (PROMO Xtra, Sept. 19, 2006).
“This opportunity to improve our operational effectiveness, accelerate our cost reduction and improve our margins is meaningful, and we are moving forward aggressively with the implementation,” Kennedy said in a statement. “We expect these actions to result in significant and sustainable savings for the company, and I am confident that the individuals assuming greater responsibility and decision-making will be more effective in their roles moving forward.”
For the third quarter, Revlon said it expected net sales of $280 million to $290 million and a loss of $135 million. For the full year, the operating loss is expected to be range between $45 million to $55 million, which reflects overhaul moves and the costs to discontinue Vital Radiance.
The company’s brands include Revlon, Almay, Ultima, Charlie, Flex, and Mitchum.
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