NY POST
CRUEL YULE CUTS
By PETER LAURIA

November 22, 2006 -- SonyBMG is set to announce a dismantling of its Sony Urban Music division that will hand pink slips to a large number of employees just in time for the holidays, The Post has learned.

According to several sources both inside and outside the company, the dissolution of Sony Urban, which was created under the former regime of Don Ienner and Michelle Anthony, is imminent, with an official announcement coming by Dec. 1, and possibly as early as today.

Sources said employees' nerves have been rattled while they wait for the layoff ax to fall ever since Rob Stringer, brother of Sony Corp. boss Howard Stringer, took over for Ienner in September. Late last week the label essentially wiped out its classical music arm, tossing out all but two executives.

The next round of cuts will result in what one source described as "wide-ranging and substantial layoffs," with back-office departments such as business affairs and legal affected the most.

Not all of Sony Urban's roughly 70 employees will be laid off, however; some are slated to be reassigned to other units within the label, the second-largest behind Universal Music Group.

Sources appeared divided on what the folding of Sony Urban means for division president Lisa Ellis, who was installed a year ago.

While some said Ellis' close relationship with Ienner and Anthony could hurt her, others said she is well-regarded with a promotional acumen that's a highly prized asset for a label whose year-to-date market share in the rap genre is a paltry 13 percent.

Universal and Warner Music, by comparison, hold a 41 percent and 22 percent share, respectively.

"[Ellis] is the one to watch in all of this," said one former insider. "She's considered a rising star over there and was very hands on developing [R&B singer] John Legend. I'd be surprised if she wasn't reassigned."

Artists residing at the division - including Legend, Beyonc

It would be nice to think that the people going are politely well informed first, but then if I believed that I too would believe in Santa.
Has anyone considered the knock on effect this will have on an inevitable new (even bigger) surge of indies appearing, as we appear to start the next phase of music?

Martin wrote:

Has anyone considered the knock on effect this will have on an inevitable new (even bigger) surge of indies appearing, as we appear to start the next phase of music?

There really is a "thing" on the way isn't there?

One of those periodic explosions in music usually when the names are all a bit unexciting. Just outside the major's influence and understanding.

How will the bean-counters fight back?

I suppose I'll be able to say I read it here first

What will be interesting Zoo, is watching people, used to regular wages competing with the rabble.
I do feel sorry for anyone losing their jobs, don`t get me wrong(that`s an awful thing), but I believe the really top notch people will form excellent new stables. A digital indie explosion is on it`s way, and more digital indie charts as well.
In other words, a very exciting chaos.
And the music will benefit

Yes Martin, I was talking to a LaFace exec today and saying that in the next year, there will be about 1,000 former label suits trying to start thier own thing. The question is will it work for most or just glut the market with people (many of whom) can't or don't have what it takes to do it on their own.

More muck for us to deal with if you ask me!

never fear GG...something will rise from muck. And it's got to be better than what's happening right now. Face facts, it can't get any worse...can it?