Richard Branson's London-based independent record group V2 is undertaking an international restructuring. A spokesperson confirms a "small number" of international job losses will result.
Richard Branson's London-based independent record group V2 is undertaking an international restructuring.
In a statement issued Friday, the company says it will overhaul its pre-existing international structure for a new decentralized system, in which its territory division centers in the United Kingdom, United States and France take greater control over their respective markets. "Our belief is that this will improve our ability to 'cross-sell' our repertoire and better exploit our unique (for independent companies) affiliate structure," says the company.
A spokesperson confirms a "small number" of international job losses will result, including international marketing director Andy McNaughtan. In the United Kingdom, "several" people have been let go, including a staff member from each of the A&R, finance and business affairs teams. Sources say staffers were summoned on Friday to a two-hour meeting outlining the company's direction.
"Although these are difficult times in the record business all of our changes reflect our wish to do things better and most cost effectively," comments worldwide CEO Tony Harlow in the statement. "We need to constantly review our structures and make sure that we are spending our resources on the things that add value. We are organising ourselves everywhere in a away that facilitates these positive aspects of our business."
In Germany, V2 is entering a cost-saving strategic partnership with independent dance music specialist Ministry Of Sound, involving shared promotions and back office services. With immediate effect, V2 will relocate to share office space with MoS in Berlin. Thomas Zimmerman, finance director, and head of promotion Daniella Leubner are among those on the way out. MoS Germany CEO Konrad von Loehneysen assumes a non-executive strategy role in V2 Germany.
The company is also exploring a shift towards shared backroom services for Benelux as a region.
Details of the new organisational structure for the U.S. will be unveiled shortly by its president Andy Gershon. As a result of a shift in focusing all U.S. marketing out of its New York office L.A.-based GM marketing Steve Backer and his assistant have been let go.
Since launching in 1996, V2 has built an empire incorporating affiliates in 15 markets and licensees in 30 countries. Its stable of artists include Stereophonics, Liberty X, Paul Weller, Grandaddy, Elbow. In the United States, the label represents Moby on license from EMI-owned Mute Recordings, and White Stripes via London-based indie XL.