Late last night, the New York Times published an article, citing leaked documents, that stated if the consortium led by Sony Corp. of America gets approval to acquire EMI Music Publishing -- which it did on Thursday -- it would cut 326 positions over two years to achieve $70 million in net cost savings.
Below is Sony/ATV Chairman/CEO Martin Bandier's email to the company's staff in response to the article, obtained by Billboard.biz:
By now, I am sure you have read or heard about today's New York Times story that references Sony and the investor group's plans for integration. I wanted to write to all of you to set some of the facts straight.
Over the last several months, we have been working with many units of your company to develop a strategic integration plan. This plan changes daily, as we continue to analyze the vast amount of information and meet with the department and regional heads at EMI Music Publishing. Since various governmental agencies around the world are still reviewing the proposed transaction, it was, to us, premature and inappropriate to share our thinking publicly. It is unfortunate that the New York Times received this information while we are still developing this integration plan.
While we do not have a completed integration plan to date, I will share with you some of our thoughts as to that process. If the transaction is approved by all the necessary agencies around the world, our current plan is to reduce the total number of employees of the two companies. The exact numbers or percentages are not final. Since our companies remain separate, we
continue to learn more about the existing structure of EMI Music Publishing, which is quite different than when I was there, and evaluate the information we receive. Without a doubt, it is our intention to retain the best and brightest employees at both companies.
I will keep you apprised as all of these various events move forward.