HOLLYWOOD - After 35 years of spinning out hits by such acts as Cat
Stevens, the Police, and Sheryl Crow, A&M Records abruptly closed its
doors yesterday - firing nearly 170 employees who were sent home and told
"not to come back."
They were among nearly 500 employees cut in Los Angeles and New York by
Seagram Co. as part of a massive restructuring that will eliminate
thousands of music industry jobs around the world. About 110 Geffen
employees were fired.
Executives at Seagram's Universal Music Group say that A&M and Geffen will
be folded into Interscope Records to form IGA - one of four large music
groups made up of consolidated labels acquired in Seagram's purchase of
PolyGram. About 200 employees were also laid of yesterday at the New
York-based Motown, Mercury, and Island labels. About 250 artists will also
be dropped over the next few months, sources said.