The company said it had proposed the closure of a call centre in Crosby and changes at other sites, which will result in the loss of 1,150 jobs, although 250 staff will be offered relocation.
About 150 further redundancies will be made at the company's headquarters in Speke and Aintree in Liverpool, and sites in Preston and Manchester.
It said a growth in online sales through its site LittlewoodsDirect.com had prompted a fall in telephone orders.
"Our business is changing because the way our customers choose to shop with us is changing. We anticipate that 70 percent of our sales will be online by 2010/11 and, therefore, the future of our business is online-led," chief executive Mark Newton Jones said in a statement.
Despite the announcement, Shop Direct sales are on the up. Earlier this month, the company, which still has Littlewoods as a brand, said its sales increased 9 percent over the six weeks to 2 January.
Last year Shop Direct launched a £4m ad campaign promoting both its clothing and non-clothing ranges as part of its shift from a mail-order model to focus on its internet business. The work, created by WCRS, was a change in strategy for the brand, which has focused on repositioning as a fashion-led retailer.
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