Rykodisc Records, which has been operating as a stand-alone label since it was acquired by the Warner Music Group in 2006, has been placed under WMG's Independent Label Group.

As part of the move, five Ryko staffers have been let go and ILG will supply marketing, sales and graphic design capabilities to the label, which will still be overseen by Rykodisc head of A&R Ruby Marchand.

Marchand, who is left with a seven-person staff mainly comprised of A&R executives, will now report into ILG CEO and Warner Bros. Records executive VP Todd Moscowitz, sources said.

Earlier this year, WMG folded Ryko Distribution and assigned its labels to the Alternative Distribution Alliance.