By : Erik Gruenwedel | Posted: 08 Feb 2010
Blockbuster has downsized departments at its corporate headquarters and distribution center in Dallas resulting in layoffs among its executive ranks, said spokesperson Michelle Metzger.
The No. 1 DVD rental chain, which employs about 3,000 people in the Dallas/Fort Worth area, cut a “very small portion” of that workforce — a staff reduction that did not warrant a filing with the Securities and Exchange Commission (SEC), according to Metzger.
Executives who departed the company as of Feb. 5, included Phillip Marrow, SVP and chief information officer; Eric Peterson, EVP and chief administrative officer; and Bill Lee, EVP and chief marketing officer.
“All levels [within the company] were included in this,” Metzger said. “I can firmly tell you that [CEO] Jim Keyes and [CFO] Tom Casey are still in place.”
She said the internal reorganization was an attempt to “optimize” the business and realign staff resources.
Indeed, Blockbuster is eliminating underperforming stores as it expedites rollout of a multiplatform distribution channel that includes Blockbuster Express kiosks (with partner NCR Corp.), a by-mail program with 1.1 million subscribers and Blockbuster On Demand movie streaming.
“Some of our executive teams had built up great staffs underneath them, and they realized they could move on to something else,” Metzger said.