plans to cut 8% of its workforce and discontinue its Vital Radiance brand, which has sustained big losses since its launch earlier this year.
Shares of the beleaguered cosmetics company fell 17 cents, or 14%, to $1.07 in midday trading Monday.
Revlon said the job cuts will amount to 250 positions and will result in restructuring charges of $29 million. As part of the restructuring, the company will eliminate the positions of chief marketing officer, held by Stephanie Klein Peponis, and chief creative officer, held by Rochelle Udell.
"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," said Revlon President and CEO David Kennedy in a statement.
Kennedy, formerly Revlon's financial chief, was installed as CEO last week. He took over for Jack Stahl, who had held the top spot for more than four years.
Revlon said it plans to discontinue Vital Radiance, a line of products targeted toward older women, because of the brand's disappointing performance and the likelihood that it won't maintain an economically feasible retail footprint. Vital Radiance is expected to cut Revlon's operating results by $70 million in the current quarter and $110 million for the year, the company said.
"The likelihood of the brand maintaining much of its retail space in the future, including adequate space at the brand's best accounts, was questionable, which made staying the course unfeasible for Revlon," Kennedy said.
Revlon sees third-quarter sales of $280 million to $290 million, after giving effect to about $40 million in Vital Radiance returns and allowances. Analysts polled by Thomson First Call predict sales of $295.3 million.
For the full year, Revlon anticipates sales of $1.34 billion, with an operating loss of $45 million to $55 million.