Borders cuts 136 corporate jobs

A view of the interior of the new Borders superstore in Pittsburgh Township, Michigan, February 13, 2008.

SAN FRANCISCO (Reuters) - Borders Group Inc BGP.N said on Thursday that it had eliminated 136 corporate jobs, mostly at its Ann Arbor, Michigan headquarters, as the struggling U.S. book retailer tries to reduce costs.

The job cuts, which were across nearly all business areas and ranks, represent about 12 percent of Borders' corporate workforce, the company said.

Earlier this month, Borders announced it would eliminate six vice president and 10 director positions as it consolidated its corporate management structure.

The company, which operates stores under the Borders and Waldenbooks names, has about 27,000 employees.

Borders has been focused on expense management since Chief Executive Ron Marshall took the helm after the ouster of former CEO George Jones in January.

Marshall, a former private equity executive with experience turning around ailing companies, has said the immediate priority for Borders is to aggressively cut costs as it tries to strengthen its balance sheet.

Borders has seen its shares tumble 94 percent since last year.

The No 2 brick-and-mortar book seller behind Barnes & Noble Inc (BKS.N) has been trying to reduce its debt as it struggles with slumping sales that have plagued the sector.

Earlier this month, the company and its largest shareholder, Pershing Square Capital Management, extended a deadline for Borders to repay a $42.5 million loan.

Shares of Borders were up 2 cents, or 3.9 percent, at 53 cents in afternoon New York Stock Exchange trade.

(Reporting by Alexandria Sage; Editing by Lisa Von Ahn)