In its continued consolidation with Hollywood Entertainment, rental chain Movie Gallery will be letting go about 100 employees in an effort to reduce expenses and streamline operations.
“Unfortunately, the process of making our company stronger will have an impact on a number of our valued and talented associates and partners,” said Joe Malugen, Movie Gallery’s chairman, president and CEO, in a statement. “The consolidation of these corporate functions will allow the company to reduce its salaried and administrative office staff by approximately 10% over the next twelve months, primarily in our Dothan [Alabama] office.”
The company has also eliminated 80 other positions in the past six months. Affected departments include finance, accounting, treasury, product, logistics, human resources and payroll.
“While we are hopeful that the fourth quarter will being to show some improvement due to the release to video of several box office hits, the profound softness in our market requires us to take a hard look at our cost structure,” Malugen also said.
