Redbox president Anne Saunders has left the DVD kiosk operator, as parent company Outerwall restructures its business with plans to lay off 8.5% of its employees.
“These actions are consistent with the plans we outlined earlier this year and ensure that Outerwall’s operations drive enhanced value creation for both our shareholders and retail partners,” Outerwall CEO J. Scott Di Valerio said in a statement.
Outerwall will discontinue three new venture concepts: Rubi, Crisp Market and Star Studio. The wind-down process is expected to be substantially complete by the end of the first quarter of 2014. The company expects to record a one-time, pretax charge of $26 million to $29 million in the fourth quarter of 2013 related to the shutdowns.
Leadership responsibilities for Redbox will be managed on an interim basis by the existing Redbox executive team, overseen by Di Valerio, until the president position is filled in the coming months.
“I am confident in the future of Redbox and the Redbox executive leadership team which will continue its work to drive the business and ensure a smooth transition to the next president,” said Di Valerio.
Between discontinuation of the new ventures and additional layoffs, the company has reduced its workforce by 251 positions, an 8.5% reduction. The cuts will reduce costs by about $22 million annually beginning in 2014, Outerwall said. In association with the layoffs, the company will incur a one-time $5 million charge in the fourth quarter of 2013.