- Sony Music Entertainment is readying a restructuring plan that would slash an estimated 1,000 jobs, trim its roster of artists and combine back-office operations in a bid to cut costs, sources close to the situation said Thursday.
The restructuring would mark the first major moves by Sony Music chief Andrew Lack, a record industry outsider who was tapped last month to head Sony Corp’s music division, home to such acts as Celine Dion and Bruce Springsteen.
A spokesman for Sony declined to comment but record industry executives and analysts have expected that a restructuring would follow the surprise appointment of Lack, who had been an NBC executive.
“We’re all just waiting for Lack to make his move,” said one record industry executive.
One source close to the situation expected the restructuring to be announced sometime after the industry’s prestigious Grammy Awards on Feb. 23 and before the end of Sony’s fiscal year on March 31.
Lack replaced ousted Thomas Mottola, a celebrity executive credited with helping to build the careers of such pop divas as Dion, Jennifer Lopez and Mariah Carey – whom he married and later divorced.
Word of massive job reductions at Sony began circulating the day Mottola resigned in January, with some veteran music insiders suggesting the creative executive left in part because he resisted making the cuts in the year ahead.
Music industry sources said Sony management was unhappy with the division, which posted operating losses of $142 million last year. [Variety]