Bertelsmann to Close Urban Music Unit
In a bid to cut costs, German media giant Bertelsmann is expected to close the urban music department at its RCA division, sources said.
The move, which is expected to result in the dismissal of about 20 employees, is Bertelsmann’s solution to the label’s lackluster sales in the rap and R&B; genres.
At least a handful of the acts signed to RCA probably will be shifted to Bertelsmann’s Arista or J divisions, sources said.
Bertelsmann is expected to lay off hundreds of other employees before the end of the year as part of a continuing corporate restructuring.
A Bertelsmann spokesman declined to comment.
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