Borders Cuts Heavily from Paperchase Division in Third Round of Layoffs This Year

By David Comment

logo_print.gifDailyFinance is reporting that Borders is entering its third round of layoffs this year, just a few days after appointing Bennett LeBow as its new chairman.

Here’s a key paragraph: “DailyFinance has learned this newest wave of job losses affects the Paperchase division, Borders’ London-based stationery, cards and gifts subsidiary that operates 337 shops located within the United States. The entire Paperchase field team has been eliminated, effective immediately, as have a substantial number of managerial positions. It is not known at this time how many employees have been laid off, but those affected are to receive severance pay from the company.”

This comes after Borders cut 164 positions in January and an unspecified number more in March. Not a good year so far. Borders’ spokesperson told DailyFinance that the company “is always looking for opportunities to improve performance and profitability. Any recent changes are a continuation of our efforts.”