The much anticipated Sony restructure being masterminded by new boss Andrew Lack went began yesterday. In an internal memo Lack explained: "We are streamlining the management structure of the company both in the US and abroad, and we are taking measures to more closely coordinate our marketing efforts around the world. We are also combining some functions, most notably in sales and distribution, in order to minimize duplication of efforts and more efficiently service the needs of our artists, employees and customers."
The restructure will mean some integration of principal labels Columbia and Epic (including the creation in the US of a cross label R&B department), and the intergration of teams around the world, especially in distribution. It is also likely to mean a global workforce reduction of about 1000. Justifying the changes lack continued: "While these changes will result in the loss of some positions, we believe that they will also enable Sony Music Entertainment to effectively meet the challenges of a continually changing marketplace for music worldwide. Moving forward, we all have good reason to be optimistic. With a roster that includes some of the greatest artists in the world, a vast catalogue of influential recordings and access to the considerable resources of our parent company, we are perfectly positioned to continue as a leader in our business. Please know your efforts will be even more important as we continue to grow the company in the months and years ahead, and further solidify SME’s reputation as one of the most dynamic and successful organizations in the music industry."