COLUMBIA HOUSE TO CUT 500 JOBS

The company plans to lay off about 736 employees by closing distribution and order-processing facilities in Colorado Springs, CO, and Bloomington, IN, and about 20% of the staff at its New York headquarters will be let go.

At the same time, however, Columbia House expects to add between 250 and 340 jobs at a facility in Indiana, where it will consolidate order-processing operations.

Columbia House Chairman Scott Flanders told staffers Tuesday (4/3) that the reorganization was part of an effort to "drive greater efficiencies and enable the company to capitalize on emerging opportunities in both the traditional direct-marketing and online segments of the club market."

The headcount reductions coincide with the company's rebound this year, largely credited to a growth in DVD sales. Over the past decade, since CD sales flattened out, Columbia House has seen its sales numbers consistently decline.