Ms. Nelson said that most of the layoffs would involve workers from the Internet division.
A charge of 9 cents a share for revamping the Internet division resulted in the loss.
About 40 of the 90 jobs in the Internet division will be eliminated, a company spokesman said.
The two will also combine Internet divisions, providing a single national portal.
In a statement, the company said Bertelsmann's Internet division would be dissolved.
But generally speaking, he said, less than half the investments a company makes in its Internet division actually pay off in online sales.
Karaoke direct is an Internet division established in 1997 been serving the public online since 1998.
Workers in the Internet divisions of traditional media companies yearn for their operations to be spun off and taken public.
The company reported lower television advertising sales and continued losses at its Internet division, which has yet to turn a profit.
That turns out to be the Internet division, but it's so confusing I'm not sure how fast anything will get here.
