Sources confirm that Sony BMG Mexico let go between 20-25 employees, in past week, as part of an effort to restructure the company in a shrinking marketplace. The cuts impacted all areas of the company and approximately 130 staffers are now in place.
Sony BMG is Mexico’s marketshare leader, with a roster of local star acts that includes Vicente Fernández and Camila. The company also works all major Sony BMG acts in the territory.
According to preliminary year-end figures from the IFPI, legal sales of physical product in Mexico dropped by 22% in 2007, compared to 2006. In addition, market research reports indicate that 71% of all music sold in Mexico is pirated, compared to the 67% rate reported in 2006. On a brighter note, preliminary year-end reports indicate that sales of digital music in Mexico are on the rise and are expected to offset some of the fall-out from the decline in physical sales.
