Home » Employment News » Redbox lays off 150 employees and is blaming the impact of COVID
Redbox lays off 150 employees and is blaming the impact of COVID
https://www.whatjobs.com/news/employment-news/redbox-lays-off-150-employees-and-is-blaming-the-impact-of-covid
By Nagasunder in Employment News, posted April 6, 2022
Redbox Entertainment, which operates a national network of DVD rental kiosks as well as a streaming-video business, has announced the layoff of 150 employees - around 10 percent of its total workforce.
The company announced the layoffs in an 8-K filing with the SEC on Friday, citing "the ongoing adverse effects of the COVID-19 pandemic" on its operations.
As of the end of 2020, Redbox conveyed having 1,467 employees.
READ MORE: MORE LAYOFFS PLANNED AT BUZZFEED AFTER SEVERAL EDITORS LEAVE
Redbox notified the SEC on Friday, April 1 that it will be unable to file its 10-K annual report for 2021 within the prescribed time frame without undue effort or expense.
The layoffs are expected to reduce the company's annual operating costs by $13.1 million, with a one-time restructuring charge of approximately $3.8 million, mostly related to severance payments.
In a February filing, Redbox stated it had 24 theatrical releases in the fourth quarter of 2021, which was less than expected, and that the surge in COVID cases from the omicron variant caused "disruption" to the business.
Redbox reported a net loss of $92.9 million for the nine months ending September 30, 2021, which more than doubled the previous year's net loss of $39.1 million.
For the first nine months of 2021, the company's revenue was $216.4 million, a decrease of 53 percent from the same period the previous year. As of September 30, Redbox had $361.9 million in net long-term debt on its balance sheet.
On Friday, Jan 28, 2022, Redbox borrowed the remaining $15 million available under its revolving credit facility.
In the February filing, Redbox said: "Management is actively taking steps to decrease monthly costs, delay capital expenditures, and increase revenues.
“Redbox is also evaluating a variety of strategic alternatives.
”In October 2021, Redbox Entertainment became a publicly-traded company after merging with a special purpose acquisition company (SPAC).
Source: Variety
Follow us on YouTube, Twitter, LinkedIn, and Facebook.
