Borders, the second largest U.S. bookstore chain, plans to cut 10 percent of corporate jobs in an effort to lower costs.The company, based in Ann Arbor, plans to layoff 124 workers, primarily in the finance and information technology divisions, Reuters reports. About 88 of the jobs are at Borders' headquarters, while the remaining 36 jobs will be cut elsewhere. Executives will not be affected by this mass layoff.
About 40 positions will also be cut from distribution centers in California and Tennessee.
"There's an ongoing need to balance the payroll and the overhead with the sales performance," Borders spokeswoman Anne Roman told Reuters.
The company has reported dwindling sales as consumers purchase more books and music online. Reuters reported Borders' sales dropped 14.6 percent during the 11-week holiday period that ended January 16.
Borders currently employs about 22,500 workers, mostly in the United States. The company operates 515 stores between it's namesake superstores and the Waldenbooks chain. However, the book-selling company is in the process of closing 183 Waldenbooks stores, and therefore, will only have 148 Waldenbooks stores open by early February.
