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The steps announced on Monday come a week after Revlon, which is controlled by financier Ron Perelman, ousted its president and CEO Jack Stahl, and replaced him with the company's CFO, David Kennedy.
"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 statement.
Revlon had been counting on Vital Radiance, which was launched in late 2005, to help reverse its fortunes, but results were disappointing, causing merchants this spring to cut back on space allowed for them.
The restructuring includes eliminating certain senior executive positions and consolidating facilities. The company's brand marketing and creative activities in the United States will be consolidated, reducing layers of management.
For the third quarter, Revlon said it expects a loss of $135m and net sales in the range of $280m to $290m. For the full year, adjusted earnings before taxes, depreciation and amortization for the year is expected to be approximately $75m to $85m and operating loss is expected to be approximately $45m to $55m, reflecting the impact of restructuring actions and the costs of discontinuing the Vital Radiance brand.
For the year, the company expects net sales of approximately $1.3bn, including the impact of Vital Radiance returns and allowances provisions in the second and third quarters of 2006.
Revlon shares fell 7 cents to $1.17 in morning trading on the New York Stock Exchange. They are down 62% since the end of 2005.
