Redbox president leaves company; 3 ventures shuttered: Outerwall
Redbox President Anne Saunders has stepped down, Outerwall announced Tuesday. It also announced plans to shutter three ventures.
The video and game rental retailer said it plans to discontinue its Rubi, Crisp Market and Star Studio businesses, and expects to take a fourth-quarter pretax charge of $26 million to $29 million relating to the closures.
The company will also cut its workforce by 251 positions, or 8.5 percent. It said the job cuts are expected to help save about $22 million annually, starting in 2014.
"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.
The company said its search for Saunders' replacement will begin immediately.
Outerwall said it now expects fourth-quarter earnings per share of $1.18 to $1.33, and full-year earnings of $5.44 to $5.59 a share.