Beauty Industry

Alberto-Culver to Cut Jobs

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By: Jamie Matusow

Editor-in-Chief

Alberto-Culver Co., the distributor of Alberto VO5 and Tresemme hair care products, said it plans to cut 2 percent of its work force and may close a plant as part of a restructuring effort following the November spinoff of its beauty supply distribution business. Alberto-Culver, which separated from Sally Beauty Holdings Inc. in November, 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. “This represents a right-sizing, looking at those areas that related to services we were maintaining in support of Sally,” the company said. 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 perviously announced payments of $14 million to the company’s former president and chief executive and $18 million to accelerate stock options.

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