Shake-Up Seen at Sony Music

Sony Music Entertainment chief Andrew Lack is developing plans to slash tens of millions of dollars in costs by integrating a variety of record business operations around the world, sources said.

Lack’s blueprint to restructure Sony Corp.’s music division could result in the loss of more than 1,000 jobs worldwide, the sources said. The plan is coming together barely a month after the ouster of his predecessor, Thomas D. Mottola.

Officials at Sony Music headquarters in New York declined to comment. Sony’s music unit is home to such acts as Bob Dylan, Jennifer Lopez, Bruce Springsteen, Shakira, Leonard Cohen and the Dixie Chicks.

The restructuring plan comes amid expectations of wrenching change both for Sony Music Entertainment, which ranks third among the five major music corporations, and an industry wracked by rampant piracy and falling sales.

Details about the anticipated consolidation and changes in management structure are not expected until mid-March.

But sources said Lack intends to streamline Sony’s U.S. division and promote Columbia Chairman Don Ienner to run it in a new position as Sony Music America’s domestic head. Outside the U.S., the restructured company is expected to remain under Sony Music international head Bob Bowlin.

The reorganization probably will have little effect on operations at Sony Music’s satellite office in Santa Monica.

Lack has been meeting regularly with Sony Music executives to review every facet of the company’s shrinking global empire, sources said. He is looking for his new executive team to trim artist rosters and make staff cuts as well as consolidate a variety of back-room services at Sony’s Columbia and Epic labels, according to the sources.

Epic Group Chairman Dave Glew will retire at the end of March, at which point Epic executive Polly Anthony is expected to take over the label. Michele Anthony, who recently renewed her deal, will continue as executive vice president of Sony Music Entertainment.

Ienner, despite his anticipated promotion, has yet to sign a new contract, sources said.

Lack, a former television executive with no record industry experience, took charge as Sony Music chairman and chief executive Jan. 10. He was installed as Mottola’s replacement by his longtime friend and confidant, Sony Corp. of America Chairman Howard Stringer.

Sony’s Japanese brass made the decision to remove Mottola after his music division posted operating losses of $142 million last year, sources said.

Times staff writer James Bates contributed to this report.