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Summary:

Warner Music Group is expected to layoff about 400 staffers as the company looks to focus more on its digital efforts, Billboard Biz report…

Warner Music Group is expected to layoff about 400 staffers as the company looks to focus more on its digital efforts, Billboard Biz reports. Unnamed sources told Billboard Biz that the layoffs will be staggered, rather than all coming down at once.

The company plans to simultaneously invest in new initiatives, including more hires for its digital operations. On Monday, WMG said it was creating a new production division designed to develop and produce original programming for network, cable, DVD, broadband and mobile platforms. The LA-based division, named Den of Thieves, will work with WMG’s record labels, which include Atlantic, Elektra, Bad Boy and Rykodisc, among others, to create content for distribution around its artists’ releases and special projects. Secondly, Den of Thieves will explore original programming and opportunities beyond WMG’s roster in an effort to broaden the scope of content created by WMG and its labels.

The new unit will be led by MTV veteran Jesse Ignjatovic and Evan Prager, a music industry exec who has worked at Epic Records and Def Jam. Release

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  1. This is pretty big news. I think I mentioned this before but I believe this is the year where all record labels will do some restructuring. The message I got from each record label is that CD sales are down (one record label said $400 Million) and digital sales are up ($200 Million for the past year). That leaves a $200 Million loss from the previous year. I think they will be all ears when it comes to providing them solutions to cut the operating costs.

  2. previous WMG employee Wednesday, May 9, 2007

    The problem with WMG's digital strategy is WMG's IT leadership itself. The incompetence and ineptitude of the IT leadership is almost criminal.

  3. I don't care what they do in down loading. I WILL NOT PAY FOR DOWNLOAD! And I worked in IT for over 29 years!
    I want the whole package, remastered, cool photos and lyrics printed.
    If labels won't do it, fuck them, I got all I need anyway.

    Rick A.

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