Monday , July 22 2024

The Incredible Shrinking Sony Music

Sony Music, essentially the Columbia and Epic labels, is laying off 1000:

    Sony Music Entertainment is making sweeping layoffs in the first reorganizational move by its new chairman and chief executive, Andrew Lack.

    Mr. Lack, who succeeded Thomas D. Mottola about three months ago, plans to eliminate 1,000 jobs in the United States and abroad as part of a broad cost-reduction plan that would try to cut expenses by more than $100 million a year, people close to the company said yesterday.

    ….The cuts include about 300 positions in the United States. The layoffs will affect people who work in distribution, manufacturing, administrative support and corporate offices, and at Sony’s two major record labels, Columbia Records and Epic Records.

    The layoffs come as Mr. Lack seeks to restructure, streamline and leave an imprint on a company that was run for 14 years by Mr. Mottola, an industry giant. Mr. Mottola left under a pall after the music division experienced huge financial losses as its market share continued to shrink, at a time when CD sales in general had fallen. Mr. Lack, formerly the president and chief operating officer of NBC, was hired by Sir Howard Stringer, chief of the Sony Corporation of America, in the hopes that he could help improve the division’s finances.

    “We are also combining some functions, most notably in sales and distribution, in order to minimize duplication of efforts and more efficiently serve the needs of our artists, employees and customers,” Mr. Lack said in an undated memorandum to employees. [NY Times]

Best of luck to my pals at Sony

About Eric Olsen

Career media professional and serial entrepreneur Eric Olsen flung himself into the paranormal world in 2012, creating the America's Most Haunted brand and co-authoring the award-winning America's Most Haunted book, published by Berkley/Penguin in Sept, 2014. Olsen is co-host of the nationally syndicated broadcast and Internet radio talk show After Hours AM; his entertaining and informative America's Most Haunted website and social media outlets are must-reads: Twitter@amhaunted,, Pinterest America's Most Haunted. Olsen is also guitarist/singer for popular and wildly eclectic Cleveland cover band The Props.

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