The Columbia House Co., a giant in the direct marketing of music and video entertainment products, plans to lay off as many as 500 employees and close two of its facilities, in its second major reorganization within about a year.

The company plans to close its Bloomington, IN, distribution facility by the end of June, where about 190 employees work. By the end of the year, the company expects to close its Colorado City, CO, distribution center which employs 500 people. Another 44 jobs will be eliminated from its New York offices as well as some in Terre Haute, IN, according to company spokesperson, Maura McLoughlin.

The businesses from both cities will be moved to the Terre Haute where 250 to 350 jobs are expected to be created. Bloomington workers will be offered the opportunity to transfer to Terre Haute, McLoughlin said.

“Although we regret the need to reduce staff and close our facilities in Bloomington and Colorado City, these costs reduction initiatives will position the company for long-term success and profitability,” CEO Scott Flanders said in a statement. “These actions will drive greater efficiencies and enable the company to capitalize on emerging opportunities in both the traditional direct marketing an online segments of the club market.”

An internal Columbia House memo that circulated today on a Web site that tracks layoffs and company closings stated: “These actions, which are part of a larger strategic initiative that you will be hearing more about in the next day, will 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.”

In the memo, New York employees were directed to report to the Marriott Marquis Hotel yesterday instead of the Columbia House office to receive a two hour briefing on the reorganization.

In February 2000, Columbia House announced the retirement of its CEO Richard Wolter and the elimination of 87, or 2% of the company’s 3,500 workforce at the time. In March of that year the company reorganized in the face of its pending merger with CDNOW and divided the firm into three divisions: Columbia House, columbiahouse.com and CDNOW.

Columbia House is co-owned by AOL Time Warner and Sony. In early 2000, Time Warner, which merged with AOL in January, took a $220 million charge to write down its investment in Columbia House.

The Columbia House Co., a giant in the direct marketing of music and video entertainment products, plans to lay off as many as 500 employees and close two of its facilities, in its second major reorganization within about a year.

The company plans to close its Bloomington, IN, distribution facility by the end of June, where about 190 employees work. By the end of the year, the company expects to close its Colorado City, CO, distribution center which employs 500 people. Another 44 jobs will be eliminated from its New York offices as well as some in Terre Haute, IN, according to company spokesperson, Maura McLoughlin.

The businesses from both cities will be moved to the Terre Haute where 250 to 350 jobs are expected to be created. Bloomington workers will be offered the opportunity to transfer to Terre Haute, McLoughlin said.

“Although we regret the need to reduce staff and close our facilities in Bloomington and Colorado City, these costs reduction initiatives will position the company for long-term success and profitability,” CEO Scott Flanders, said in a statement. “These actions will drive greater efficiencies and enable the company to capitalize on emerging opportunities in both the traditional direct marketing an online segments of the club market.”

An internal Columbia House memo that circulated today on a Web site that tracks layoffs and company closings stated: “These actions, which are part of a larger strategic initiative that you will be hearing more about in the next day, will 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.”

In the memo, New York employees were directed to report to the Marriott Marquis Hotel yesterday instead of the Columbia House office to receive a two hour briefing on the reorganization.

In February 2000, Columbia House announced the retirement of its CEO Richard Wolter and the elimination of 87, or 2% of the company

The Columbia House Co., a giant in the direct marketing of music and video entertainment products, plans to lay off as many as 500 employees and close two of its facilities, in its second major reorganization within about a year.

The company plans to close its Bloomington, IN, distribution facility by the end of June, where about 190 employees work. By the end of the year, the company expects to close its Colorado City, CO, distribution center which employs 500 people. Another 44 jobs will be eliminated from its New York offices as well as some in Terre Haute, IN, according to company spokesperson, Maura McLoughlin.

The businesses from both cities will be moved to the Terre Haute where 250 to 350 jobs are expected to be created. Bloomington workers will be offered the opportunity to transfer to Terre Haute, McLoughlin said.

“Although we regret the need to reduce staff and close our facilities in Bloomington and Colorado City, these costs reduction initiatives will position the company for long-term success and profitability,” CEO Scott Flanders said in a statement. “These actions will drive greater efficiencies and enable the company to capitalize on emerging opportunities in both the traditional direct marketing an online segments of the club market.”

An internal Columbia House memo that circulated today on a Web site that tracks layoffs and company closings stated: “These actions, which are part of a larger strategic initiative that you will be hearing more about in the next day, will 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.”

In the memo, New York employees were directed to report to the Marriott Marquis Hotel yesterday instead of the Columbia House office to receive a two hour briefing on the reorganization.

In February 2000, Columbia House announced the retirement of its CEO Richard Wolter and the elimination of 87, or 2% of the company’s 3,500 workforce at the time. In March of that year the company reorganized in the face of its pending merger with CDNOW and divided the firm into three divisions: Columbia House, columbiahouse.com and CDNOW.

Columbia House is co-owned by AOL Time Warner and Sony. In early 2000, Time Warner, which merged with AOL in January, took a $220 million charge to write down its investment in Columbia House.