Don’t panic! Barnes & Noble is losing tons of money on the Nook, so they’re making a new one.
On Wednesday, Barnes & Noble released its third quarter results for the fiscal year 2014. The company reported a profit (though revenues were down 8.8% compared to the previous year), but the Nook remains a financial albatross. In a conference call accompanying the report, the company addressed the Nook’s struggles with conflicting messages, saying the company has cut 190 positions in its Nook division over the course of the 2014 fiscal year but that—everybody get excited!!!!—a new tablet that will lose even more money will be released in the financial year 2015.
Barnes & Noble’s Nook division remains sizable—it currently contains “about 500 positions,” according to Publishers Weekly‘s Jim Milliot. But more cuts are likely. But wait, there’s more:
CEO Mike Huseby noted that B&N estimates that future Nook restructuring charges could cost the company another $40 million. He also said B&N was considering closing its existing Palo Alto Nook office and relocating employees to another office, possible back in New York. Huseby reiterated that the company is close to reaching an agreement with a third party manufacturer to release a color tablet this fall. …read more

Via: Melville House Books