Atlantic, Elektra Reorganize

In a long-anticipated shake-up, Warner Music Group reorganized its Atlantic and Elektra divisions on Wednesday, firing about 170 employees in a merger of the two historic labels and installing a new management team to run the unit.

The move comes as part of a wider cost-cutting drive mounted by Edgar Bronfman Jr. and a team of other investors who purchased Warner Music from Time Warner Inc. this year for $2.6 billion.

As part of the reorganization, veteran Atlantic talent whiz Jason Flom will become chairman and chief executive of the newly combined Atlantic-Elektra unit.

Craig Kallman, who was co-president of Atlantic under Time Warner, will become co-chairman and chief operating officer.

Julie Greenwald, who had run rival Universal Music Group’s Island label, has been named president.

Greenwald resigned from her post last week after she and Universal were unable to come to terms on a renewal of her contract. Atlantic founder Ahmet Ertegun will remain with the company as founding chairman.

-- Jeff Leeds