Layoffs Hit Universal Music
January 15, 2010 at 1:45 PM (PT)
The economy has forced market leader UNIVERSAL MUSIC GROUP to further streamline its label and distribution divisions, reports THE LOS ANGELES TIMES, which reports "UMG cut about 50 staffers today, according to label sources who spoke on the condition of anonymity, less than 1% of the company's worldwide workforce of 8,000. Cuts were made across multiple labels as well as UMG's distribution arm, UNIVERSAL MUSIC GROUP DISTRIBUTION, which is headquartered in UNIVERSAL CITY. Labels affected included VERVE and INTERSCOPE."
An UMG spokesman confirmed the cuts, but declined to answer questions or comment on specifics.
YESTERDAY, ALL ACCESS confirmed one of the layoffs was LOST HIGHWAY VP/Promotion & Artist Development RAY DI PIETRO (NET NEWS 1/14). And we are also hearing that out of the NASHVILLE office, several staffers have exited, one of them being LOST HIGHWAY VP Artist/Media Relations JIM FLAMMIA.
Leaving ISLAND is MINNEAPOLIS-based promo veteran DENISE LUTZ. Find her at (763) 546-0648 or email@example.com. DAVID McGILVRAY out of CHICAGO picks up her territory.
JENNIFER DEGRAF from UNIVERSAL MUSIC & VIDEO DISTRIBUTION in SAN FRANCISCO exits, and GARY BAKER and RUSSELL GATEWOOD, Artist Development Representatives at UNIVERSAL MUSIC GROUP DISTRIBUTION in SAN FRANCISCO are also out.
The label is "continuing to transform our organization to better serve our artists and business partners," the company said in a statement. "Given the current economic climate, we have to be as agile and efficient as possible. Unfortunately, these ongoing efforts have resulted in some redundancy. However, UMG will now be even better positioned to compete in the growing global, digital marketplace."
Details on the individuals affected as they become available.