BMG North America cut over 150 jobs yesterday
in an attempt to increase profitability and reduce redundancies within its U.S.
Under the new structure, LaFace Records and So
So Def Records will be relocated within the newly formed Zomba Label Group,
Clive Davis announced yesterday.
"This new structure underscores our deep
commitment to preserving and strengthening our diverse record labels and investing
in creativity and artists," said Davis. "BMG has a peerless roster
of superstar and developing artists who deserve the very best creative homes
and the resources necessary to develop careers that endure and music that inspires."
Arista, the label Davis founded, has gone from
a stand-alone label to an imprint under the RCA Music Group. Under the new structure
Laface and So So Def will remain stand-alone record labels, their artists and
distribution will be handled by the Zomba Label Group
Artists effected by the broad changes include
Outkast, Bone Crusher, Anthony Hamilton, J-Kwon, Pink, Usher, Youngbloodz, Clipse,
Kelis and others.
BMG's North American operations now include RCA
Music Group (RCA, J, Arista), Zomba Label Group, BMG Canada, BMG Strategic Marketing
Group and BMG Distribution. RLG - Nashville.