North American offices to run with reduced staff.
The Sanctuary Group will reduce its headcount by 175 employees (25% of its worldwide staff) by the end of this year, reveals a memo from CEO Andy Taylor that was emailed to the staff earlier today (Oct. 7).
Most of the layoffs will take place in North America, including the closing of the company's Canada and Raleigh, N.C., offices. However, the memo states that it will maintain its North American offices with a reduced staff.
For the six-month period ending March 31, the London-based company posted a net loss of £3.65 million ($6.86 million), or 1.07 per share ($2.01), on revenues of £85 million ($159.7 million). The company's debt, totaling £109.3 million ($205.4 million), frightened shareholders and prompted talks with potential suitors including Warner Music Group and EMI Music, though no deals took place with either company.
Sanctuary began staff cuts in the United States in August, when it let go of about 15 staffers (Billboard, Sept. 10). Those on staff who will be let go by year's end have already been informed, says a Sanctuary source, allowing those who will continue with the company to "get on with doing business in a positive and confident manner."