NY Post: Live Nation Layoffs Coming
June 25, 2008 at 5:12 AM (PT)
MICHAEL COHL's abrupt departure as Chairman of LIVE NATION (NET NEWS 6/20) has sent shockwaves through the concert promoter's ranks, with employees of the unit COHL led fearing layoffs and CEO MICHAEL RAPINO being accused of waffling on the firm's commitment to mega-deals, reports THE NEW YORK POST.
LIVE NATION's board is scheduled to meet today to go over the final details of COHL's resignation and discuss what rights, or lack thereof, he has regarding artists he brought to the company, sources inside the company told THE POST. COHL led the ARTIST NATION division, which was set up to house MADONNA, JAY-Z and the other artists LIVE NATION is expected to sign to so-called 360 deals, which include recording, touring and merchandising.
"There's a lot of confusion about the move and what it means for [the ARTIST NATION] strategy," said one LIVE NATION insider. As part of the unit's launch, LIVE NATION staffed up on promotion and distribution executives, radio consultants and others. But without an album to work on until 2010 at the earliest, sources said not all of the ARTIST NATION employees would survive until then.
"A lot of the people in that division are going to be let go," said one source close to LIVE NATION.
A LIVE NATION spokesman declined comment.