Columbia House to lay off 190

According to state figures, unemployment in Bloomington stands at 2.6 percent, well below the 4.6 national percentage.\nBut another longtime Bloomington company announced layoffs Tuesday.\nWithin 60 days, Columbia House will close its compact disc order processing center just west of town.\nThe company will lay off 190 workers from the Bloomington facility and 500 at a distribution center near Pueblo, Colo. Operations will be consolidated at the company's main facility in Terre Haute, which has 2,270 workers.\nIn a statement, Columbia House Chief Executive Officer Scott Flanders said the closings were part of a company-wide effort to cut production costs.\n"Although we regret the need to reduce staff and close out facilities in Bloomington and Colorado, these cost-reduction initiatives will position the company for long-term success and profitability," he said. "These actions 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."\nJohn Habets, vice president of human resources for Columbia House in Terre Haute, said the company will provide severance pay and help the laid-off workers find new jobs.\nHabets also said a few eliminated workers with seniority in Bloomington would be able to transfer to Terre Haute. Most of the Bloomington jobs involved clerical work and paid just above minimum wage.\n"We're certainly disappointed," said Nathan Hadley, the city's executive assistant for economic development. "It shows that we should continue to focus our efforts on new and changing economic circumstances. But immediately, we're going to see to it that these workers get the training they need."\nOwned by AOL/Time Warner and Sony Music, Columbia House is considered the leading direct marketer of music. In 1999, it bought out CDNow.com in an effort to expand its services online.\nColumbia House is best known for advertisements offering consumers deals such as "12 CDs for a penny." After joining, members must purchase several CD selections during the next year or two at a price of about $17 each plus $3 shipping and handling.\nColumbia House has operated out of Bloomington for the past 23 years.