Borders US will retrench 274 corporate employees or about 1% of the company's total workforce.

 
The Michigan-based book chain has issued a statement saying none of the lay-offs would affect employees in the 574 Borders superstores and 475 Waldenbooks specialty retail stores.

 
In the statement, America's second-largest book chain said it was making the cuts "to put us in a better place for the future and because our overhead expenses are not in line with ther nature of our business today".
Borders CEO, George Jones, said the company remained committed to new initiatives, including plans for new high-tech concept stores. While the cutbacks were "difficult" the cuts would boost Borders' long-term profitability, he said.

 
The Australian arm of Borders remains on the market after its planned sale to Angus & Robertson fell through following a failure to agree on the makeup of the company's ownership.

 
But in the US, the company has still not made an announcement about selling off the entire chain despite widespread speculation it will do so this year. If and when it does decide to sell, Barnes & Noble, the largest book chain in the US, has indicated it would be a front-runner to buy the stores.

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