Digital movie rental player Redbox Entertainment has cut 150 jobs to cut operating costs amid the pandemic.
On Friday, Redbox disclosed in a Securities and Exchange Commission filing that the downsizing, which was completed on March 29, came “in response to the ongoing adverse effects of the COVID-19 pandemic.” The company said the cost-cutting measure would reduce annual operating costs by about $13.1 million.
To do this, Redbox estimated one-time restructuring charges at approximately $3.8 million, most of which will be related to severance payments. Redbox in the SEC filing added that it had filed a notice on April 1 with regulators stating that it had been unable to file its annual report for the year ended December 31, 2021 on time.” without unreasonable effort or expense”.
Redbox, traditionally known for its DVD rental kiosks in grocery stores and convenience stores, also offers digital rentals of Hollywood movie titles on demand. This allows customers to choose between renting or buying Redbox titles via download for offline viewing.
But the pandemic has disrupted Redbox’s business model, and many others in the theater business. Based out of Chicago, Redbox has offices in Los Angeles and Seattle.
Shares of Redbox Entertainment closed Friday at $2.31, down 5 cents, or just over 2%. This is well down from the 52-week high of $17.90 reached on November 1, 2021.