Borders Cuts Six VP Jobs, 10 Director Positions

Ann Arbor, Mich. Borders Group Inc. said Tuesday it is cutting six VP and 10 director jobs to consolidate its management and help trim expenses in a tough economy.

Borders has eliminated the role of executive VP, U.S. stores, which was held by Ken Armstrong, and cut the post of senior VP and CIO held by Susan Harwood. Both Armstrong and Harwood joined Borders Group in 2007.

The position of senior VP, e-business, which was held by Kevin Ertell, has also been eliminated.

In addition, Borders cut the position of VP, real estate; VP, human resources services; and VP of Borders' creative unit.

All of the above business areas will be supported by existing staff when functions are consolidated.

The 10 eliminated director positions include the roles of sales director and merchandise strategy, among others.

Separately, Borders said Fred Boehler, senior VP, logistics, has resigned.

"As we address the immediate priority of getting our company's financial house in order, one of our goals is to more aggressively reduce annual expenses," said Borders Group chief executive Ron Marshall.

Borders has struggled with liquidity and balance sheet concerns, but decided in December it would not put itself on the auction block, an option that had been considered for more than a year as part of a financial turnaround plan.