Report: Restructuring At Sony BMG
May 15, 2008 at 5:24 AM (PT)
In the wake of yesterday's report of falling revenues at SONY BMG (NET NEWS 5/14), comes a report in THE NEW YORK POST of possible restructuring at the company. More moves would happen just weeks after SONY BMG CEO ROLF SCHMIDT-HOLTZ shook up the company by dumping COO TIM BOWEN, sidelining legendary creative executive CLIVE DAVIS, and firing DAVIS' right-hand man CHARLES GOLDSTUCK.
BARRY WEISS, the new CEO of the division, is in the midst of hammering out a plan to streamline the business in the wake of succeeding DAVIS.
While job cuts are anticipated as part of the realignment, insiders insist they will not be extensive, and some job losses will be offset by the addition of new staff in growth areas like digital.
Sources also said that BMG's two major creative centers -- WEISS' JIVE and DAVIS' former fiefdom, RCA/J -- will remain separate entities.
SONY BMG, which employed over 2,800 staffers last year, has reportedly reduced its workforce by almost half since the merger of the two companies in 2003.