Motown Records Layoffs To Follow Capitol Music Group Restructure

No Longer Standing Alone

MOTOWN RECORDS was hit with news of impending layoffs yesterday as the label returned under the umbrella of the CAPITOL MUSIC GROUP after a while as a standalone under departing Chairman/CEO ETHIOPIA HABTEMARIAM (NET NEWS 11/30), who was instrumental in revitalizing the legendary label.

A MOTOWN RECORDS spokesperson confirmed the layoffs to ALL ACCESS with the following statement: “As MOTOWN returns to the CAPITOL family, certain positions that had been created when we became a stand-alone label have since become duplicative. These employees are leaving the company and our People, Inclusion and Culture department is helping them find new opportunities — either within or outside of UMG.”

HABTEMARIAM was promoted to Chairman/CEO at the label when it was spun out as a standalone in MARCH 2021.

MOTOWN has been part of CAPITOL MUSIC GROUP since 2014, when UMG broke up ISLAND DEF JAM MUSIC GROUP and moved MOTOWN to LOS ANGELES, where they were based out of the CAPITOL Tower. That same year, HABTEMARIAM was named President of the label, and in 2015, partnered with QUALITY CONTROL, which brought MIGOS, LIL BABY, LIL YACHTY, CITY GIRLS and more to the label. HABTEMARIAM was named Chairman/CEO in 2021, when MOTOWN was established as a standalone label. In fact, QUALITY CONTROL was acquired by HYBE AMERICA for $300 million in cash and stock last week (NET NEWS 2/9/23).

MOTOWN had maintained its own A&R and marketing departments, but shared radio promotion with CAPITOL.

CAPITOL MUSIC GROUP also includes BLUE NOTE, ASTRALWERKS and CAPITOL CHRISTIAN MUSIC GROUP.

MOTOWN's marketshare in 2022 was .97%, up from .90% in 2021, even though it had counted as part of CAPITOL MUSIC GROUP's marketshare despite its standalone status.

« see more Net News