Outerwall said the head of its Redbox unit has left and announced a retrenchment that will close several new ventures, trim annual costs by $22 million and eliminate 251 positions, or 8.5 percent of its work force.
Scott Di Valerio, chief executive officer of Outerwall, said the moves “ensure that Outerwall’s operations drive enhanced value creation for both our shareholders and retail partners.”
Redbox, which rents DVDs at its signature red kiosks, will be run by its existing management team until Outerwall replaces Redbox President Anne Saunders, the company said.
The company also said it will wind down its RubiT, Crisp MarketT and Star Studio concepts by the end of the first quarter and take a $26 million to 29 million pretax charge this quarter.
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Di Valerio said the restructuring reflects confidence in “our core Coinstar and Redbox businesses and the company’s strong cash flows.”