Borders lays off 10% of its corporate workers

Posted Feb 19th 2009 4:19PM by Zac Bissonnette
Filed under: Employees

Borders Group (NYSE: BGP) announced today that it has laid off another 136 members of its corporate workforce. That amounts to 12% of its corporate workers and 1% of its overall headcount.

In a press release, CEO Ron Marshall called the cuts "necessary steps we must take along with other non-payroll expense reductions to help get this company back on track financially." The layoff report has the company's stock up more than 7% -- to 55 cents per share, about 95% lower than the stock was trading one year ago.

Since becoming CEO in January, Ron Marshall has moved to cut costs and try to salvage some value at Borders, but there's still a good chance that his efforts will be overwhelmed by the economy, competition, and a series of strategic blunders by his predecessor.

That Borders has failed to attract any interest from its better-financed competitors in spite of its dwindling stock price and $32 million market indicates that competitors are skeptical about the company's prospects for survival.

Tags: BGP, Borders, Borders Group, BordersGroup, Layoffs