Blockbuster Cuts Jobs Near the Top8 Feb, 2006 By: Erik Gruenwedel
As expected, Blockbuster Inc. announced it would cut 300 positions at its corporate headquarters in Dallas and McKinney, Texas.
The cuts over the next two weeks include 200 staffers and 100 undefined vacant positions at the corporate level, according to a Blockbuster spokesperson. It is not known how much the cuts, which represent 23% of Blockbuster's 1,300 corporate positions, save the company.
“We are committed to assisting departing employees by offering them a severance package, outplacement service and counseling through the employee assistance program,” said spokesperson Randy Hargrove.
Blockbuster executives in a third-quarter conference call said they intended to reduce sales, general and administrative (SG&A) expenditures by $75 million on an annual basis.
“That's one chunk of money,” said independent retail analyst Dennis McAlpine. “Maybe [CEO John] Antioco can take less of a salary.”
Late last year, seven senior Blockbuster executives, including Antioco, cashed out more than $1.7 million in deferred stock options.