The ongoing consolidation of the Atlantic Group and the Elektra Entertainment Group into one East Coast label is expected to be finalized this week. Layoffs are expected to occur by Wednesday.
According to sources, the merged group will wind up with 229 staffers, down from the 410 the two labels employed on March 1, the day an Edgar Bronfman Jr.-led buyout group completed its acquistion of the Warner Music Group. In the first round of layoffs — which occurred the week of March 1 — sales, finance and business-affairs staffers were cut.
Lava president Jason Flom is expected to be named chairman of the combined label group, but it is unclear how the rest of the senior staff will be filled out. Julie Greenwald, who is closely associated with WMG North America chairman/CEO Lyor Cohen, is already listed in the WMG internal directory, but without a title. Greenwald has exited as Island president/Island Def Jam executive VP. Also expected to play a key role in the new structure is Craig Kallman, who currently holds the position of Atlantic co-president.
A WMG spokesman declined comment.
