"Through these changes, we can devote greater resources toward three key goals: growing our companies globally by strengthening local repertoire and providing increased marketing opportunities for global artists; building our presence in key musical genres; and maximizing opportunities within AOL Time Warner."
——Roger Ames, WMG Chairman/CEO

HE AMES TO PLEASE

WMG Boss’ Letter Seeks To Calm Staff Fears About Cutbacks
In a move to calm the troops, Warner Music Group Chairman/CEO Roger Ames sent out an internal memo to his staff regarding the current restructuring of the label group.

TO: WMG Employees

FROM: Roger Ames

As you may be aware, Warner Music Group has initiated a restructuring of its companies worldwide. At this critical time in the history of the music industry, it's clear that we have a responsibility to realign our businesses to address the changing marketplace. Sadly, there will be job cuts as a part of this restructuring. These are coming about from a combination of the voluntary early retirement program that we undertook in January, and an ongoing evaluation and reorganization of the infrastructure and back office functions within our companies.

I want to assure you, however, that whenever possible we will reassign those employees who are affected. Those not reassigned will be offered severance packages and job placement services.

Our U.S. distribution arm, WEA Corp., will be reorganizing its staff and offices at several of its branches throughout the U.S. The company will refocus its sales efforts to become a more marketing oriented company. These changes will ultimately enable WEA to react faster to customer demand and work closer with our labels to market artists more effectively.

Furthermore, we will preserve the separate operational structure of our U.S. label groups. We will remain committed to strengthening all of the creative areas within the company.

Through these changes, we can devote greater resources toward three key goals: growing our companies globally by strengthening local repertoire and providing increased marketing opportunities for global artists; building our presence in key musical genres; and maximizing opportunities within AOL Time Warner.

Please understand that this restructuring is not simply about cost-cutting or headcount reduction. It is about changing the way we do business. With an eye toward long-term growth, I am confident that we can transform the Music Group into the preeminent music content company of the 21st century.

We understand that change of this sort I unsettling and we will endeavor to keep you as fully informed of the process as possible.

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