Retail

Redbox lays off 150 due to COVID losses

Image courtesy of Redbox.

April 20, 2022

Redbox Entertainment Inc. reduced its workforce by 150 employees on March 29 as part of a cost streamlining in response to "ongoing adverse effects of the COVID-19 pandemic," according to an SEC filing.

The company estimated the reduction will decrease its annual operating costs by approximately $13.1 million, and that it will incur one-time restructuring charges of about $3.8 million.

On April 1, 2022, the company filed a notification of late filing with the SEC and announced it is unable to file its annual report on Form 10-K for 2021 within the prescribed time period without unreasonable effort or expense.

For the nine months ending Sept. 30, 2021, the company lost $92.9 million — more than double that of the same period the previous year, according to a Variety report. In addition, the revenue of $216.4 million for the first nine months of 2021 fell 53% from the year-earlier period.

In January, the company borrowed the $15 million available under its revolving credit facility.

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