Nov. 12 (Bloomberg) -- QVC Inc., the home-shopping channel controlled by cable billionaire John Malone, said it will eliminate 700 jobs, or about 5.8 percent of its U.S. workforce, as part of a cost-cutting drive.

The firings and other steps will result in a $30 million to $40 million reduction in 2009 operating costs, West Chester, Pennsylvania-based QVC said today in a statement.

QVC is cutting costs as customers are spending less and missing payments on company-issued credit cards. Parent Liberty Media Corp. said last month that profit fell 23 percent because of slowing business at the home-shopping unit.

The company eliminated 160 jobs today. More will be cut as the company phases out most operations at its West Chester, Pennsylvania, distribution center and switches customer service to a work-from-home model, QVC said.

Liberty Interactive, which includes QVC, fell 30 cents to $3.46 today in Nasdaq Stock Market trading. The shares have fallen 82 percent this year.

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net.

Last Updated: November 12, 2008 19:28 EST