Tuesday, January 18, 2011

Borders Makes More Cuts, 45 More Laid Off

The downsizing of Borders continued yesterday with the news that it laid off 45 employees--40 at corporate headquarters and five in its distribution centers. According to employee message boards, Borders CEO Michael Edwards is expected to make an announcement Wednesday,  although a company spokesperson said nothing is scheduled.

The cuts in the Ann Arbor office cut across all departments. “The realignment at the store support center encompasses nearly all business areas, including IT, human resources, finance and merchandising,” Borders said in an e-mailed statement. “This decision is a result of Borders’ focus on reducing costs and readjusting its business model to improve profitability and cash flow.”

Last week, Borders announced its intention to close its LaVergne, Tenn. warehouse this summer.
As reported in Friday's PW Daily, Borders wants an answer before the end of the month on its proposal to exchange missed payments for notes and publishers appear likely to take all the time they can to make a decision to see if Borders improves its offer  Publishers are frustrated that they seem to be the ones bearing much of the financial burden in a financial restructuring. 
*From an article on PW Daily 
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