Responding to the conditions of the marketplace, Geffen Records on Friday trimmed 20 positions from its 205-member workforce. The cuts cross all levels of the exec ranks at the label.
“We recognize that, in order to stay competitive and ensure future growth, companies have to change — Geffen Records has already reinvented itself several times over the years,” said chairman Ed Rosenblatt in a statement. “We’ve made the very difficult decision to re-direct our resources by eliminating 20 staff positions today, spread throughout the company on all levels.”
Even with discs from Beck and Counting Crows active on the sales charts, Geffen’s performance has cooled since it posted record revenues of $505 million in 1994, the last year label founder David Geffen was involved before stepping down and handing the reins to Rosenblatt.
While Rosenblatt and his team have made a number of potent deals, such as a pact with Outpost Records, and Geffen Records still remains near the top of dealmakers’ shopping list for new acts, the company has fallen short of duplicating the successes it had with such acts as Guns N’ Roses.
It also has had a tough time breaking some acts, an area that David Geffen would frequently cite as among its strengths.
No artists were dropped from the label’s roster.