By IRENE CHAPPLE
More than a third of the jobs at Warner Music New Zealand have been axed as part of a global shake-up aimed at saving the company US$200 million ($313 million) to US$300 million.
Three top executives with 64 years between them at the company - managing director James Southgate,
financial director Geoff Sherning and marketing manager Peter Andrews - have been made redundant.
Four other staff have also been made redundant and another, Kerry George, quit the day the redundancy notices were handed out. The staff will leave at the end of the month, cutting the 19-member office to 11.
Southgate, who has been with Warner Music New Zealand for 10 years, said redundancies were handed out a week ago by Shaun James, the chair and chief executive of Warner Music Sydney.
The scene after James' visit was described by staff members in online newsletter Median Strip as "carnage", but Southgate disagreed.
"Seven people were made redundant," he said. "It was an unfortunate and disappointing day."
Southgate believed the New Zealand office would remain viable, despite the changes.
By keeping a marketing and promotions presence they believed they could serve the unique elements of the New Zealand market, he said.
Southgate, who would not comment on his contract with Warner Music, said he was saddened by leaving, but was pleased with what had been achieved by Warner Music New Zealand, including signing Anika Moa and the Feelers. The cuts come as part of a shake-up of Warner Music, bought this month, for US$2.6 billion, by a group of investors led by Edgar Bronfman Jr.
The day after the purchase Bronfman announced he would cut a fifth of Warner's international workforce - or 1000 people - to save money.
