Alberto-Culver to Cut Two Percent of Staff, Take Charges in the First Half of 2007

2006-12-01 | 08:37

Alberto-Culver Co. plans to cut 2% of its work force and may close a plant as part of a restructuring effort following the November spin off of its beauty supply distribution business. Alberto-Culver, which separated from Sally Beauty Holdings Inc. last month, said the moves will result in charges of $13 million in the first quarter and $3 million in the second quarter. The company plans to combine two marketing units and outsource some unspecified international services. It will cut 90 jobs from its staff of 3,800. The move is expected to be finished by the end of the second quarter Alberto-Culver also plans to sell its corporate jet in early 2007 and close a Dallas manufacturing facility by the end of the year. The charges are separate from previously announced payments of $14 million to the company’s former president and chief executive and $18 million to accelerate stock options.