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Revlon to cut about five percent of workforce

The makeup company said that it was cutting costs as the price of raw materials has increased along with slowing consumer demand.

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Revlon is cutting five percent of its workforce in a bid to restructure. (Slaven Vlasic/AFP/Getty Images)

Revlon said Wednesday that it would be cutting 250 jobs - five percent of its workforce - in a restructuring effort.

The makeup company said that it was cutting costs as the price of raw materials has increased along with slowing consumer demand.

Demand has been particularly hard hit in Europe and China.

The Wall Street Journal reported that the New York-based company is trying to save $10 million annually.

Despite the gloom, the company grew at 1.7 percent, as higher sales in the American and South American markets were offset by sluggish Asian consumption.

Europe has seen a 15 percent drop in consumption, said the Associated Press.

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Revlon said that it would be closing and relocating two factories, including one in France and the other in Maryland.

The plant in Venezuela was already destroyed in a fire in June.

Revlon employs as many as 5000 workers overall, said Reuters.

The company is expected to take a short-term $25 million hit due to restructuring.

Shares is the company were down about two percent today.

http://www.globalpost.com/dispatch/news/business/120905/revlon-cut-about-five-percent-workforce