Report: BMG Entertainment Considers Layoffs to Gain Profitability

Share this content:
BMG Entertainment may fire hundreds of employees as part of a cost-cutting initiative to meet German parent Bertelsmann AG's drive to boost profitability, according to a report in The Wall Street Journal.


Executives at BMG Entertainment are slated to meet next week in Madrid, Spain, and will discuss the cuts as part of the agenda.


A $17.6 billion company, BMG Entertainment is the global music division of Bertelsmann. It has more than 200 record labels in 54 countries. These include Arista Records, Ariola and RCA Records.


Online, BMG has more than 37 music and lifestyle Web sites under the click2music.com canopy. In addition, the company owns music publishing companies as well as CD- and cassette-manufacturing firms. Overall, BMG Entertainment employs more than 5,000 people.


The Journal reported that BMG Entertainment is expected to post losses of more than $150 million for the year. Difficulties in the German and U.S. markets are being held responsible for the red ink. Write-downs on Internet investments and management changes at Arista were also blamed.


close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above