The 16-month-old management team at MCA Records has made another mark on the growing label by restructuring several key departments. The move, which had been planned for several months, will eliminate 23 positions and create 12 new posts.
Label sources said the restructuring is not related to recent cost cuttings at Geffen Records or the ankling of a pair of key execs at MCA Music Publishing, as has been widely suggested by industry insiders.
Sources said the implementation of the new structure, which adds an emphasis on A&R and marketing, is in response to shifting needs at the label that, until prexy Jay Boberg took the helm in late 1995, had only a handful of charting artists.
“As part of our evolution, we have instituted a restructuring which will include the elimination of some positions, the redefinition of others, and the creation of a number of new posts,” Boberg said in a statement. “While these decisions are always difficult, we believe the changes will strengthen MCA Records.”
The changes are also not in response to a corporate mandate by MCA parent Seagram’s execs to reduce costs to boost profits, sources said. Though other divisions have streamlined their operations, label insiders said they are not under any unusual pressure to deliver more profits. Corporate insiders admit the label is ahead of its business plan.
Seagram sources said the Universal Music Group, as well as the rest of the studio, has been directed to post at least a 10% increase over last year’s results. Execs at UMG have recently been preparing 1997-98 budgets and projections for the coming fiscal year, which bows July 1, to reflect that directive.
Insiders said the corporate-wide trims also reflect the fingerprints of Seagram management, which has given its chiefs wide berth to shore up operations.
Geffen cut 20 employees from its 205-staff roster on May 30 as a cost-cutting move. The publishing arm did not renew the contract of veep John Alexander, the exec who is credited with discovering Alanis Morissette, and East Coast veep/G.M. Stephen Finfer ankled his post after four months.