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This story first broke on Friday when Silicon Alley Insider reported that 40-70 "mid-level" executives will be let go at Sony BMG. Like the rest of the recording industry Sony BMG has experienced a 10% drop in revenues in the last quarter alone. Rumors point to the layoffs across the Sony BMG system including Columbia, RCA and other members of the label group.
- Rumors at The Velvet Rope have Geffen staff being cut and the label surviving only as an imprint
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COMMENTARY: Expect end of the year layoffs to spread to other labels including EMI. And as sad as it is to see good people loose their jobs, expensive executive suites have long been a drag on the industry.
Deeper cuts across major label marketing, promo, and sales departments are far more troubling. At a time when labels are asking artists to sign broader 360 deals, they are also going to be less able to offer them the help they need to succeed.
The answer, however, is not just bulking up digital divisions with more VP's and SVP's as EMI is doing, but rather to hire more cost effective foot soldiers who understand technology and the fans and aren't afraid of the challenges ahead.
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