Geffen and Interscope Records laid several of their staff on Thursday (December 13) — a result of a rumored merger between the two record companies.
According to reports, several of the employees who lost their jobs, many had worked there for several years. There is no confirmed number, but Billboard.biz reports 15, while other outlets have reported as many as 60.
One of the rumored reasons for the cutbacks was the declining sales of the labels’ major stars — specifically several recent albums that were deemed failures.
A recent release from Will.i.am failed, and singles from artists such as Nicole Scherzinger and rapper Eve not taking off resulted in their albums repeatedly being pushed back. These factors have cost the labels millions of dollars.
“It cost $18 million to make and market those three albums — all bombs,” a source told PerezHilton.com. “Jimmy Iovine [the head of Interscope responsible for the layoffs] is the most hated man in music today!”
One, now, former employee confirmed the layoffs with us Thursday.
The job layoffs are the latest in a string of major label cuts, which included Island Def Jam and Sony BMG earlier this month.