Saturday, April 28, 2012
Roadrunner caught out
US label Roadrunner has been hit by major staff cuts, including shutting down offices in a number of countries. NZ band Avalanche City signed to Roadrunner in March this year, no word yet what the cuts mean for the band, who have a US tour scheduled for June according to Roadrunner's website. Roadrunner is a sub label of Warners, their NZ label.
Via Digital Music News... "Thursday was an extremely crappy day for the crew at Roadrunner Records. That's because parent Warner Music Group chose Thursday to slash substantial parts of the sub-label, with complete shutdowns happening in several offices outside of the US.
According to executives at the label, offices in the UK, Germany, Canada, and the Netherlands are closing, with substantial chops also happening in the US. "Everyone's getting let go, including me," one source flatly told Digital Music News.
... Roadrunner is clearly a venerable brand that stretches beyond metal, and the brand itself definitely isn't getting laid off. Most roles and backend functions are getting rolled into Warner Music Group, though there is talk of skeleton offices or some superficial presence in the various countries.
That said, this looks like a serious gutting. Sources also noted that CEO Cees Wessels is also packing his things, and in terms of a layoff count, Billboard estimates that 36 are being let go - with 16 in the US.
Warner Music Group has been a majority owner for many years, but became the sole owner late last year. Warner has not issued a release on the matter."