Burger Out At Sony Europe As Worldwide Cuts Continue

The $100 million cost-cutting initiative at Sony Music Entertainment will continue to unfold this week, as the company moves to shed 1,000 jobs. On Friday, Paul Burger, president of Sony Music Europe, became the highest-profile casualty in the restructuring of SME's worldwide operations, sources say.

Amid the changes, Sony Music International president Rick Dobbis is understood to be taking on expanded duties. It is believed that the presidents of Sony labels in several markets who reported to Burger will now report to Dobbis. Of the 1,000 worldwide staff cuts, Bulletin understands Sony's affiliates in territories outside the U.S. and Japan will account for 370 losses. Insiders are suggesting 100 jobs may be lost in the U.K. alone.

London-based Burger had been elevated to the European presidency in October 2000. He was previously the long-time chairman/CEO of Sony Music Entertainment U.K. Burger joined SME (then CBS Records) in 1977.

The axe has also fallen at Sony Music Australia, where 12 staffers have been let go, mostly from administration and promotion. Emmanuel Candi, GM of human resources and business strategy, tells Bulletin that the moves were more to "adjust to changing market conditions" than because of the worldwide restructuring. Among the departures were Will Brandt, manager of A&R; publicist Chris Merrick, and Columbia promo manager Kellie Trowbridge. Candi says Sony remains the biggest record company in Australia, "with over 440 staffers in the label and manufacturing operations."

In Berlin, Wingolf Mielke, executive VP of Sony Music Germany, and GM for Germany/Switzerland/Austria, is also on the way out. Also, leaving are Peter Grazé, GM of adult/classical, and Uwe Lerch, MD of Sony Music Media.

The U.S. will account for one-third of the cuts. In addition to the consolidation of the Columbia and Epic sales and production staffs, the U.S. labels operation will combine its R&B marketing and promotion teams into one staff, under the direction of David McPherson, currently executive VP of A&R/urban music at Epic. The promotion staff in that genre also will be overseen by Charlie Walk, who continues as executive VP promotion for Columbia Records Group. Maurice Warfield, national director of operations, Epic black music, is leaving. Lee Leipsner, Columbia senior VP pop/adult promotion, and Andrea Foreman, VP of rhythm/crossover promotion, are also understood to be out.

At Sony Nashville, the cutbacks have been light--with the art department being hit the hardest--but more layoffs are expected this week. In U.S. distribution, the Beltsville, Md., branch office as well as the San Francisco and Boston satellite sales offices are being shuttered; those staffs will work out of their homes. The Atlanta branch is being downgraded to a satellite office as the company moves to a three region set-up, with offices remaining in Los Angeles, Chicago, and Jericho, N.Y.