Warner Layoff Rumours Swirl
May 7, 2007 at 5:46 AM (PT)
DIGITALMUSICNEWS.COM reports WARNER MUSIC GROUP will be the latest major label with large layoffs. According to various sources, including those within the label, the WARNER layoffs will be "in the hundreds," though specific timetables were not offered. That mirrors recent layoff rumors at SONY BMG, which may have already started a piecemeal reduction strategy.
WARNER could take the same approach, a path that helps to minimize headlines and strong stock market reactions. The larger push to reduce overhead is happening against a backdrop of heavy CD sales declines, though labels are also beefing up on digitally-savvy executives.