Inside Move: Sony Music plans layoffs
Unit head said to be close to laying out plans
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Exact figures are still being worked out, but the sales cuts will likely be well into the dozens when the smoke clears. Recent reports put the total number of expected layoffs around 1,000 staffers -- though Sony insiders insist that number is high.
Sales cuts would follow a general trend in the industry in recent months -- both EMI and Warner Music laid off swathes of sales staffers in rounds of cost-cutting over the past two years, in an effort to streamline their operations and trim costs.
Evaluations under way
Recently installed Sony Music topper Andrew Lack -- who came on board after successfully turning around NBC's news division -- is winding up his evaluations of the company's various business units, and is said to be close to laying out his plan.
Sony execs maintain that the company won't go public with its restructuring scheme until after Sony Corp. finishes its fiscal year on March 31. Others close to the situation, however, argue that the company will act sooner, to keep the bad news on last year's books.
Cuts have started
At least some of the bloodletting has begun in Sony Music's distribution arm, however, with sources reporting that distrib chief Danny Yarbrough has departed, and several other high-level execs are on their way out.
Sony music has been a financial laggard within the Japanese conglomerate: Sales operating income dipped 8% and 9.5%, respectively, in the most recent quarter. And according to reports, Sony's corporate brass had been unhappy with former Sony Music chief Tommy Mottola's inability to keep costs under control.
