Revlon to Exit China Business to Cut Costs

(AP) -

Revlon said it is leaving China and cutting 1,100 jobs as part of a cost-cutting measure.

Most of the jobs cuts will be in China. Revlon’s operations there make up only 2 percent of the company’s sales, which have been declining.

Global sales fell 1.3 percent to $1.02 billion in the nine months through September, compared with the same period in 2012. Revenue in Asia dropped 3.5 percent during that time.

The departure will save the makeup company $11 million a year, Revlon said Tuesday in a regulatory filing with the U.S. Securities and Exchange Commission.

Revlon expects to take a $22 million restructuring charge, mostly this year. About $10 million of that charge is for employee severance and other benefits, and about $12 million consists of product discounts and inventory write-offs.

The New York-based company has had major executive changes this year, naming a new CEO in October after Alan Ennis left. It also announced a new CFO in July after its former financial executive left to join another company.