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Arista Expected to Lose Most of Staff submitted by: Lisa D. source: Los Angeles Times, The Hollywood Reporter Date: March 10, 2004 Parent Bertelsmann plans to divide the label's artist roster and cut most of 175 jobs, sources say. By Jeff Leeds, Times Staff Writer In a far-reaching reorganization, Bertelsmann is expected to shrink its Arista Records label and consolidate the back-office operations of its North American music division under new domestic chief Clive Davis, sources said. As part of the move, the vast majority of Arista's approximately 175 employees will be let go, sources said. Although the label is expected to retain its own small staff of marketing and talent executives, Arista in essence will be folded into Bertelsmann's RCA Music Group division, sources said. Arista's artist roster, which includes acts such as Outkast and Pink, will be divided among the company's other major labels. The RCA division is expected to take charge of longtime Arista acts including Whitney Houston, sources said. Bertelsmann's Jive Records is expected to take on acts signed through Arista's LaFace venture, including Outkast. The reorganization had been expected since the German conglomerate two months ago ousted Arista chief Antonio "L.A." Reid, who had been hired to run the unit after a previous Bertelsmann regime drove Davis, the label's founder, from power. Davis, brought back to the Bertelsmann fold in 2002, last month was elevated to take charge of its entire North American music operation, excluding its country and classical units. As part of the restructuring, Bertelsmann also is expected to integrate its various labels' finance and administrative units to form a common backbone for the North American music group. A spokesman for Bertelsmann Music Group declined to discuss details of the restructuring but said "we are in the process of evaluating the labels and staff at BMG North America." Arista shake-up picks up steam By Tamara Conniff Arista Records is in the process of being restructured, sources confirmed Tuesday. Many Arista artists are being moved to Jive Records, RCA Records and J Records, sources said. Layoffs are expected, though some positions will be redeployed to other parts of BMG, Arista's parent company. Arista will, however, remain a label complete with some artists, an A&R team, marketing and promotions staff, sources said. Arista artists include OutKast, Dido, Avril Lavigne, Sarah McLachlan, Pink, Whitney Houston, Kenny G and Carlos Santana. A BMG spokesman declined to comment on the moves at Arista but in a statement said: "BMG is in the process of evaluating the labels and staff in North America. We will announce any decisions or changes at the appropriate time." Arista Records founder Clive Davis, who was named chairman and CEO of BMG North America last month, is orchestrating the North American changes. In an earlier interview, Davis said of Arista, "It's the label that I founded and named, and it is vital." Under the new North American structure, Arista, J Records, RCA and Jive are being moved under one umbrella. Consolidation is mainly occurring in administrative and back-office functions . Arista Records president and CEO Antonio "L.A." Reid exited his post in January and has since been named the head of Island Def Jam Music Group. Site design by: Dolphin Webpage Designs © 1996-2004