Rhino Lays Off Several Employees, High Level Execs Next

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Warner Music Group announced that they were laying off 30 to 40 people from Rhino Records, citing a “fundamental transformation of the physical new release and catalog business.”

What this means for the catalog giant is unknown. The first problem is that we don’t know if 30 to 40 people is 3%, 30% or 50+% of their workforce. What we do know is that the statement released by Warner Music Group, the owners of Rhino, does not seem encouraging for future releases of deep catalog products. From a Variety article:

“Company said Rhino will evolve into an entity that ‘handles WMG‘s global digital catalog initiatives, film, TV, vidgame and commercial licensing, and name and likeness representation for legendary artists.’”

There’s no mention of CD releases there, just “digital catalog initiatives.” [via Vintage Vinyl News]

And  this from Digital Music News:

A number of highly-paid major label department heads are likely to be eliminated over the next few weeks, according to recent sources to Digital Music News. One well-placed executive noted that the target is a department head whose salary is overblown, sometimes past $1 million annually. “These types of compensation packages were signed in an earlier time, a different frame of mind; they can no longer be sustained,” the source relayed, while pointing to target packages within the ”$200,000 to $300,000 range” going forward.

So when will this happen, and where? Another source could only etch a “fourth quarter move,” though a dialed-in dealmaker shared news of an October 7–12 timeframe. On the exact label, sources suggested Warner Music Group, and possibly Sony Music Entertainment. EMI Music may eventually cut deeper within a bigger restructuring, potentially through bankruptcy proceedings down the line. [Digital Music News]

 

Source: The Daily Swarm

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