Sony Music's volume cut by 500
Tune arm lays off 500 as part of transition plan
Representing about 3.7% of the company's nearly 13,500 employees, these personnel cuts will cross all labels and divisions.
Sony described the layoffs "as part of an ongoing effort to maximize organizational effectiveness" that will "more effectively and efficiently transition the company to meet the new challenges brought about as the industry continues to evolve."
Record biz contracting
Sony's move is a further example of the contracting record biz, but the first that acknowledges significant changes in the industry as a result of e-commerce and the Internet, of which the current battles with MP3.com and Napster represent just the tip of the proverbial iceberg.
Last year's Universal-Polygram merger was driven by the desire to consolidate Seagram-owned Universal's domestic music operations with Polygram's powerful international presence, and that merger resulted in the elimination of about 3,000 jobs worldwide.
Once it clears the requisite regulatory hurdles, the similarly inspired Warner-EMI Music merger should result in an almost equal number of personnel cutbacks.
As of last week, Sony's year-to-date share of the U.S. current album market was 15.5%, trailing Universal's 28.1% and BMG's 20.8%, but topping Warners' 13.4% and EMI's 7.4%.
