NEW YORK: The fallout continues after last week's unceremonious dumping of Jack Stahl as ceo at US cosmetics giant Revlon. The troubled firm is now axing 250 further jobs, including top marketing executives, and terminating underperforming Vital Radiance brand.
New president/ceo David Kennedy, promoted by chairman Ron Perelman from his previous role as cfo [WARC News: 20-Sept-06], says the company was "fat in terms of senior level marketers". His urgent slimming operation will result in the departure, among others, of cmo Stephanie Klein-Peponis.
The decision to pull the rug from under Vital Radiance - aimed at over 50s women - follows the brand's disappointing sales and consequent reduction of space on retailers' shelves.
Avers 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."
The company, which also makes the Almay brand, has been struggling with debt, now running at $1.7 billion (€1.34bn; £903m), with increased competition from larger rivals like French giant L'Oreal eroding its US market share.
Comments Carrie Mellage, industry manager-consumer at consultants Kline & Co: "It's no secret they've been suffering for over a decade and haven't been profitable for a long time and they're still looking for someone to turn the company around."
Data sourced from AdAge.com; additional content by WARC staff