BORDERS SLASHES 275 JOBS
By JAMES COVERT
June 4, 2008 -- Struggling bookstore chain Borders said it will slash 20 percent of its corporate workforce as it looks to cut annual expenses by $120 million.
The nation's second-largest bookseller will eliminate nearly 275 corporate jobs, including more than 150 at its headquarters in Ann Arbor, Mich. The cost cuts are part of a broader effort to improve cash flow, reduce debt and make inventory more productive.
Hammered by a sluggish economy and brutal competition with archrival Barnes & Noble, Borders said in March it is considering selling itself. Barnes & Noble said last month that it has assembled a team to weigh a possible merger.
Cash-strapped Borders - which recently took a high-interest, $42 million loan from shareholder Bill Ackman - last week narrowed its first-quarter loss on a slight revenue decline, and ended a long-term partnership with Amazon.com.
Borders shares yesterday fell 5 cents to close at $6.14.
June 4, 2008 -- Struggling bookstore chain Borders said it will slash 20 percent of its corporate workforce as it looks to cut annual expenses by $120 million.
The nation's second-largest bookseller will eliminate nearly 275 corporate jobs, including more than 150 at its headquarters in Ann Arbor, Mich. The cost cuts are part of a broader effort to improve cash flow, reduce debt and make inventory more productive.
Hammered by a sluggish economy and brutal competition with archrival Barnes & Noble, Borders said in March it is considering selling itself. Barnes & Noble said last month that it has assembled a team to weigh a possible merger.
Cash-strapped Borders - which recently took a high-interest, $42 million loan from shareholder Bill Ackman - last week narrowed its first-quarter loss on a slight revenue decline, and ended a long-term partnership with Amazon.com.
Borders shares yesterday fell 5 cents to close at $6.14.
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