Loud Cuts


Records is feeling the heat from Sony Records.

Upset with the profits the label is bringing in, Sony has

ordered a 20 percent reduction in it’s workforce, which equals

about 20 employees. Sony invested an estimated $ 50 million

for a 50 percent stake in the label, which houses such acts

as The Beatnuts, Xzibit, M.O.P, Project Pat, Big Pun, 36 Mafia

and The Wu-Tang Clan.

According to sources, some of the divisions will be consolidated

into the Sony owned label, Columbia Records.

"Sony paid

a lot for Loud to get into rap," a source said. "At

that company,

you have to make things happen quickly. Tommy’s smart —

he won’t wait."

Sources state that a major issue was the high cost of signing

and promoting Rap artists, who aren’t getting enough exposure

on various media outlets.

Columbia and Loud

execs declined to comment.

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