Revlon Restructuring to Eliminate 1,000 Positions
Revlon will eliminate around 1,000 positions worldwide as part of a restructuring to reduce costs.
About 650 current employees will be affected, with the remaining 350 attributed to currently unfilled positions.
The company employed about 7,100 people as of Dec. 31, 2019, according to an SEC filing.
Among the cosmetic company's restructuring efforts include signing an $850 million agreement with Jefferies Finance to refinance its February 2021-due senior notes and its 2019 term loan, as well as extend near-term maturities and provide new funding. This deal will close in the second quarter.
The company will also continue to work with Goldman Sachs to explore options for its portfolio and regional brands.
The moves are projected to save $200 and $230 million by the end of 2022, with about 60% of this stemming from the headcount reductions, expected to be complete by the end of this year.
The information was shared in tandem with the company’s fourth quarter results, in which it reported year-over-year net sales down 5.7%, to $699.4 million. The company breaks out sales into four segments — Revlon, Elizabeth Arden, portfolio and fragrances — and the drop was primarily attributed to declines in fragrances and Revlon.
Net sales for the Revlon segment dropped 7.2% for the quarter. Portfolio, which includes such brands as Almay, Mitchum and American Crew, declined 7.2%, and fragrances decreased 13.8%.
Elizabeth Arden, however, grew 7.5%, and the segment has experienced net sales growth every quarter since Revlon acquired the brand in 2016.
Full-year sales also dropped 5.7%, to $2.42 billion from $2.56 billion.
“With the new financing commitment to improve our capital structure and extend debt maturities, as well as our efforts to build a more efficient and streamlined business, I am confident in our ability to continue to strengthen the relevance of our brands around the world and significantly improve our margins and drive increases in our cash generation and profitability,” said Debra Perelman, Revlon president and CEO, in an earnings call.
Perelman was named CEO in 2018, and the company brought on Sergio Pedreiro as its COO earlier this year.