Borders Group Inc. said on Tuesday it will slash 274 jobs which represent 20 percent of its corporate positions in an attempt to save $120 million a year.

The job cuts include 156 jobs at its Ann Arbor headquarter. They will extend to all of the company's departments such as marketing, human resources and corporate sales, according to Borders.

While it is always difficult to eliminate jobs because of the impact on employees and their families, this is an important step in our company's cost reduction initiative that will improve our profitability and put us in a much better position for long-term success, George Jones Chief Executive Officer of Boarders said in a statement.

The employees were informed yesterday but the company announced its plan to cut jobs last week. It also said in March that it was considering putting itself for sale prompting its rival Barnes & Noble Inc to assemble a management team to study the viability of a merge.

Shares of Borders closed down 0.81 percent to $6.14 on the New York Stock Exchange.