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The Drib-Drab of Major Label Layoffs…

Major labels have been downsizing for years, though huge layoffs are rarely part of the process. Instead of shuttering entire offices, dissolving sub-labels or pink-slipping thousands, the preferred path is a gradual pare-down of the ranks.

A recent reduction of tens of employees – not hundreds – by Sony Music Entertainment offers the perfect example. According to numerous major label executives, smaller reductions fly below the radar and are more difficult for the media to report.

Additionally, reductions are often spread over a number of different departments, making it difficult to distinguish between restructuring and reduction. “Big layoffs are generally spread out over time, and spread out across the company,” one executive shared.

Theoretically, that approach keeps artists, managers, partners, and even existing employees more calm. But arguments can also be made for bigger, more pronounced chops, especially when it comes to employee morale. The reason is that a piecemeal approach creates the problem of the perennially-dangling ax. On numerous occasions, executives have complained that media reporting of ongoing layoffs – including by Digital Music News – has helped to sap morale, especially when the information is coming entirely from the outside.

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