Loud 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.
Loud
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.
