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Columbia House Chairman Scott Flanders told staffers Tuesday 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."

COLUMBIA HOUSE TO CUT 500 JOBS

All 500 Will Be Obligated To Buy Five Regular-Priced CDs Over The Next Two Years
Columbia House, the once-troubled music club jointly owned by AOL Time Warner and Sony, is reorganizing operations, which will result in the termination of 400 to 500 jobs, or more than 10% of its work force.

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.

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