Report: Sony BMG Cuts Underway, Less Than Feared
December 6, 2007 at 5:46 AM (PT)
THE NEW YORK POST reports in what's become an annual rite of bah-humbug for the recording industry since 2003 -- more labels are slashing staffers in anticipation of another rough year ahead for CD sales and modest digital growth.
The biggest pre-CHRISTMAS hit is expected to come at SONY BMG, which yesterday began laying off employees as part of a restructuring, sources said. Around 20 staffers are expected to lose their jobs -- well short of the "Black FRIDAY" fears of triple that number that have swirled around the company for weeks.
Some of those positions will be replaced, while other salaries will be freed up for additional staffing in more growth-oriented areas of the company, such as digital. A&R will not be impacted, a source maintained.
On top of corporate layoffs, other sources are anticipating cuts on the SONY side of the joint venture with BERTELSMANN, as well as in areas of the company like distribution and promotion.
"The cuts are relative to the projections for what the physical (CD) and digital business will be for the next year," said one source on the condition of anonymity. "In order to meet a business plan you have to adjust."
Among the initial cuts was RON WILCOX, the company's EVP/Head of Business and Legal Affairs, sources said.