Bookspan has laid off 55 people, or about 2% of its staff. In a memo to employees, Bookspan head Marcus Wilhelm said that a disappointing first quarter, caused in part by the war in Iraq, and the need to simplify its business operations led to the downsizing. In addition, Wilhelm told employees that the company is closing down Traditions, its test club for the Jewish market, and longtime clubs Stage & Screen and Gardening & Landscaping.

The editors who headed Traditions and Stage & Screen were the only editorial staff members to be let go in the downsizing. Most of the cuts were in the creative department, which handles the design and production of Bookspan's catalogues; the offices in Garden City took the brunt of the terminations. Late last year, Bookspan cut 10 jobs as part of an organizational realignment.