ANN ARBOR, Mich., March 5 /PRNewswire-FirstCall/ -- Borders Group
announced the elimination of 742 positions throughout its 516 Borders
superstores and in a number of its 385 Waldenbooks Specialty Retail locations
nationwide, effective today. This represents less than 3% of the company's
At Borders superstores, 679 jobs were eliminated, as the company focused
on reducing the number of manager and supervisor positions in its superstores.
No changes were made at the general manager level -- the top position in each
store -- but in the majority of Borders locations, one or two other leadership
positions, such as sales managers, inventory managers, training supervisors
and merchandise supervisors, were eliminated as the company resets its
superstore management structure to correspond to sales volume on a
In addition to the changes at Borders superstores, the company also
eliminated 63 jobs within its Waldenbooks Specialty Retail segment. Again,
all store managers remain in place, but a variety of other manager and
supervisor positions, as well as additional roles in approximately 47 stores
within the mall-based chain, were eliminated.
Borders Group will offer transition pay and severance to all affected
"Every retailer operating today must manage their business prudently,
including staffing stores to maintain strong customer service levels while
also making sure that payroll investments align with the reality of sales,"
said Borders Group Chief Executive Officer Ron Marshall. "As we've said in
the past, no one likes to eliminate jobs, but reducing the number of
leadership positions in our stores was a necessary step as we streamline and
focus our payroll investment on the sales floor, where we actively engage with
customers and meet their needs -- that's what our business is all about."
About Borders Group, Inc.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a
leading retailer of books, music and movies with approximately 27,000
employees. Through its subsidiaries, the company operates more than 1,000
stores primarily under the Borders(R) and Waldenbooks(R) brand names and
offers online shopping through Borders.com. For more information about the
company, visit www.borders.com/aboutus.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. One can identify these
forward-looking statements by the use of words such as "projects," "expect,"
"estimated," "look toward," "going forward," "continue," "maintain,"
"planning," "returning," "guidance," "goal," "will," "may," "intend,"
"anticipates," and other words of similar meaning. One can also identify them
by the fact that they do not relate strictly to historical or current facts.
These statements are likely to address matters such as the company's future
financial performance (including earnings per share, gross margins and
inventory turns, liquidity, same-store sales, cost reduction initiatives, and
anticipated capital expenditures and depreciation and amortization amounts)
and its cost reduction initiatives and the benefits thereof. These statements
are subject to risks and uncertainties that could cause actual results and
plans to differ materially from those included in the company's
These risks and uncertainties include, but are not limited to, consumer
demand for the company's products, particularly during the holiday season,
which is believed to be related to general economic and geopolitical
conditions, competition and other factors; the availability of adequate
capital--including vendor credit--to fund the company's operations and to
carry out its strategic plans and the performance of the company's information
technology systems and the development of improvements to the systems
necessary to implement the company's strategic plan.
The company's periodic reports filed from time to time with the Securities
and Exchange Commission contain more detailed discussions of these and other
risk factors that could cause actual results and plans to differ materially
from those included in the forward-looking statements, and those discussions
are incorporated herein by reference. The company does not undertake any
obligation to update forward-looking statements.
SOURCE Borders Group, Inc.
CONTACT: Anne Roman, +1-734-477-1392