Ideal Shopping Direct is to axe 70 jobs after sales fell back 17% for the six weeks to December 7.
Ideal Shopping Direct said that it was likely to make a loss of around £4 million for the year as a result of falling sales.
Ideal Shopping Direct said that the job losses accounted for around 15% of its workforce and that it would also look to phase out its temporary staff by the end of the financial year. The company will incur £400,000 in redundancy costs but will save £1.5m in annual employment costs.
Separately Ideal Shopping Direct has appointed Ian Jebson as finance director from Charles Tyrwhitt. Jebsen was also previously finance director at Littlewoods Shop Direct. Jebsen will replace Steve Mensforth.
Ideal Shopping Direct chief executive Mike Hancox said: "We are taking radical action to improve sales, efficiency and reduce costs. We remain focused on generating improved returns from our home shopping and internet channels to achieve the best possible results in the current economic climate."