Revlon to axe 1,000 jobs to boost profits

The New York beauty conglomerate has announced the restructuring plan as sales decline for another quarter

Revlon is to cut nearly 1,000 jobs before the end of 2020.

The owner of Elizabeth Arden and Juicy Couture fragrances said the move will contribute 60% towards the two-year US$230m cost saving plan.

Revlon has implemented job cuts for more than a decade in a bid to improve profits and remain competitive against agile brand incubators, indie players and larger rivals.

In 2019, the New York-based firm closed two plants in the US and France, and axed 250 jobs.

"The refinancing commitment and the launch of the new restructuring programme are significant steps forward in the transformation of our business for the future and create a structure that is designed for success in today’s beauty industry," said Debra Perelman, President and CEO of Revlon.

"With an improved capital structure, increased liquidity, and more efficient and streamlined business, I am more confident than ever in our ability to take on the opportunities within our industry and continue to deliver for our key stakeholders, global customers and most importantly our deeply dedicated consumers."

Revlon expects to reduce costs by up to $115m in 2020 and incur estimates upwards of $55m in charges related to severance costs.

In Q4 2019, the beauty giant’s sales dropped by 5.7% to $699.4m compared to 2018's $741.6m.

The company's perfume business, including Charlie and Britney Spears Fragrances, was hit hardest as sales declined by 13.8% from $179.8m to $155m.

Elizabeth Arden, which Revlon acquired in 2016, remains the only profitable division of the business as sales increased by 7.5% to $168m in Q4 2019.

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