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Digital movie rental player Redbox Entertainment has cut 150 jobs to reduce operating costs amid the pandemic.
On Friday, Redbox disclosed in a Securities and Exchange Commission filing that the workforce reduction, completed on March 29, came “in response to the ongoing adverse effects of the COVID-19 pandemic.” The company said the cost-cutting measure would reduce annual operating costs by around $13.1 million.
To do so, Redbox estimated one-time restructuring charges of around $3.8 million, most of which will be related to severance payments. Redbox in the SEC filing added that it filed an April 1 notification with regulators indicating it has been unable to file its annual report for the year ended Dec. 31, 2021 on time “without unreasonable effort or expense.”
Redbox, traditionally known for its DVD-rental kiosks inside grocery and convenience stores, also offer digital rentals of Hollywood on-demand movie titles. That allows customers to choose between renting or purchasing Redbox titles via a download for offline viewing.
But the pandemic has disrupted the Redbox business model, and much else in the movie exhibition sector. Headquartered outside of Chicago, Redbox has offices in Los Angeles and Seattle.
Stock in Redbox Entertainment closed on Friday at $2.31, down 5 cents, or just over 2 percent. That’s well down from a 52-week high of $17.90 reached on Nov. 1, 2021.
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