Revlon Inc. (REV) has announced plans to cut 250 jobs, roughly 8 percent of its work force, and is canceling the recently launched Vital Radiance cosmetics line aimed at older women.
The moves are made in an attempt to return the company to profitability and came on the heels of the firing of its president and CEO, Jack Stahl. Revlon expects losses in the third quarter and for the year with shares falling 15 cents.
Increased competition from rivals L'Oreal's Maybelline and P&G's Cover Girl and the failure of their Vital Radiance line on retailer's shelves, which dragged the company's operating results down by $110 million. With a debt load at $1.4 billion Revlon struggles while a holding company controlled by Ron Perelman, who controls the company, infuses it with cash.
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