Digital film rental participant Redbox Leisure has reduce 150 jobs to scale back working prices amid the pandemic.
On Friday, Redbox disclosed in a Securities and Change Fee submitting that the workforce discount, accomplished on March 29, got here “in response to the continued adversarial results of the COVID-19 pandemic.” The corporate stated the cost-cutting measure would scale back annual working prices by round $13.1 million.
To take action, Redbox estimated one-time restructuring prices of round $3.8 million, most of which can be associated to severance funds. Redbox within the SEC submitting added that it filed an April 1 notification with regulators indicating it has been unable to file its annual report for the 12 months ended Dec. 31, 2021 on time “with out unreasonable effort or expense.”
Redbox, historically identified for its DVD-rental kiosks inside grocery and comfort shops, additionally supply digital leases of Hollywood on-demand film titles. That permits clients to decide on between renting or buying Redbox titles through a obtain for offline viewing.
However the pandemic has disrupted the Redbox enterprise mannequin, and far else within the film exhibition sector. Headquartered exterior of Chicago, Redbox has places of work in Los Angeles and Seattle.
Inventory in Redbox Leisure closed on Friday at $2.31, down 5 cents, or simply over 2 %. That’s properly down from a 52-week excessive of $17.90 reached on Nov. 1, 2021.
