SEAGRAM LAYS OFF HUNDREDS; CUTS REDUCE AREA'S A&M, GEFFEN MUSIC LABELS TO SKELETAL STAFFS.Byline: Dave McNary Daily News Staff Writer The long-expected hammer fell Thursday on about 500 employees at Universal Music Group in the first round of job cuts at what has become the world's largest music company. Hardest hit were two well-known Hollywood-based labels that were left with little more than skeleton staffs. A&M Records saw about 170 of its 200 employees depart and Geffen Records Geffen Records is an American record label, owned by Universal Music Group, and operates as one third of UMG's Interscope-Geffen-A&M label group. Company history Beginnings lost 115 of its 145 employees, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. sources who asked not to be named. The cuts had been rumored for months, dating back to Seagram Co.'s announcement last spring that it would buy Dutch music giant PolyGram for $10.4 billion. Specifics began to emerge last month when Seagram announced it would significantly reduce employment as part of a reorganization of the new Universal Music Group, placing its 15 labels in four groups. ``No one's surprised,'' said a Geffen employee who asked to not be identified. ``Honestly, it was like we came into work today to get laid off. Right now, everyone's out celebrating at the Rainbow Room For the Los Angeles nightclub, see Rainbow Bar and Grill. The Rainbow Room is a well-known upscale restaurant and nightclub on the sixty-fifth floor of the GE Building in Rockefeller Center, Midtown Manhattan, New York City. across the street.'' Montreal-based Seagram, which bought control of Universal Studios and MCA MCA in full Music Corporation of America Entertainment conglomerate. It was founded in Chicago in 1924 by Jules Stein as a talent agency. In the 1960s it bought Decca Records and Universal Pictures, and today it produces films, music, and television shows. in 1995, announced last month that A&M and Geffen would be combined with Los Angeles-based Interscope Records. In recent weeks, insiders reported, some functions at A&M and Geffen were turned over to Interscope employees. Seagram's slashing within its music group is far from over, with the next round expected to start within seven to 10 days, possibly targeting the sales staff. Further moves could cut up to 2,500 of the remaining 15,000 jobs in the combined music-group work force, a level of layoffs needed to meet Seagram's goal of generating $300 million in annual cost savings. Senior executives, including A&M chief Al Cafaro and Geffen chairman Eddie Rosenblatt, began receiving departure notices earlier this week. On Thursday, which had been dubbed ``D-Day,'' most affected employees received pink slips on arriving at work and were asked to clear out by the end of the day. A&M's headquarters on La Brea Avenue La Brea Avenue is a prominent north/south thoroughfare in Los Angeles. After Hawthorne Boulevard intersects with Century Boulevard in Inglewood, La Brea Avenue is formed. La Brea passes north through Windsor Hills, Baldwin Hills, and Ladera Heights. and Geffen's on Sunset Boulevard Sunset Boulevard is a street in the western part of Los Angeles County, California, that stretches from Figueroa Street in downtown Los Angeles to the Pacific Coast Highway at the Pacific Ocean in the Pacific Palisades. are expected to be put up for sale shortly. A&M, founded in a garage in 1963 by trumpeter Herb Alpert Herbert "Herb" Alpert (born March 31, 1935 in Los Angeles, California) is an American musician most associated with the group variously known as Herb Alpert & the Tijuana Brass or as Herb Alpert's Tijuana Brass or just TJB and Jerry Moss Jerry Moss (born May 8, 1935) is an American recording executive, best known for being the co-founder of A&M Records, along with trumpeter and bandleader Herb Alpert. After the A&M label was purchased by PolyGram, the two men went on to form Almo Sounds in 1994, a new record label to sell Tijuana Brass albums, was sold to PolyGram in 1990 for $700 million. Key artists expected to remain include Sting, Sheryl Crow and Bryan Adams. Geffen was launched in 1980 by entertainment mogul David Geffen and sold to MCA in 1990 for $550 million. Top acts include Beck, Hole and Guns n' Roses. Deep cuts also came Thursday in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of as Island lost half of its 100 employees, Mercury saw 90 of its 150 staffers let go and Motown's work force dropped from 75 to about a dozen. Island and Mercury are being combined with Def Jam, while Motown will become part of Universal Records. Sources said no decisions have been made on dropping acts from rosters but speculation has placed the number of cuts as high as 250. |
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