Ann Arbor, Mich. Borders Group announced Tuesday that it is cutting 156 corporate positions as a part of its previously announced plan to reduce annual expenses by $120 million. The eliminations are spread across virtually all departments of the chain’s Ann Arbor headquarters. Employees were informed of the job cuts Tuesday morning.
In addition, Borders Group has eliminated 118 corporate posts that are based outside its headquarters, impacting primarily corporate employees in distribution centers, the field marketing organization and the corporate sales division.
In total, the corporate payroll reduction eliminates approximately 20% of the company's corporate positions but less than 1% of its total work force. The job cutbacks, with the exception of less than a handful of positions, are limited to corporate employees and do not involve store employees at the company's 547 Borders superstores and 475 Waldenbooks Specialty Retail stores worldwide.
"While it is always difficult to eliminate jobs because of the impact on employees and their families, this is an important step in our company's cost reduction initiative that will improve our profitability and put us in a much better position for long-term success," Borders Group CEO George Jones said in a statement.