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