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Barnes & Noble to give away NOOK services, close some offices

Staff writer |
Barnes & Noble has entered into an agreement with Bahwan CyberTek (BCT), a software company, in which BCT will take over certain NOOK technology services, including cloud management and development support for NOOK software.

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Barnes & Noble also reiterated its commitment to the NOOK business and said it will continue to provide an NOOK reading experience without customer interruption.

Barnes & Noble said that as a result of the agreement with BCT, it plans to close both its Santa Clara, California and Taiwan offices. The business will be transitioned and the offices will be closed by July 2016.

“Over the last two years, the company has done a significant amount of work to improve NOOK’s overall performance,” said Fred Argir, chief digital officer at Barnes & Noble.

“While we have been able to reduce costs, we still have a lot more work to do to rationalize the business. We believe that by outsourcing certain technology functions of our NOOK business we will further improve NOOK’s performance.”

This transition is expected to result in annualized cash savings of approximately $13 million, which includes approximately $8 million of expense reductions and approximately $5 million of capital expenditure reductions.

In the first quarter of fiscal 2017, the company expects to record severance charges and transition related costs of approximately $6 million.

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