Music business

BMI will reduce “just under 10%” of the total workforce

The American collection company BMI (Broadcast Music, Inc) is laying off “just under 10%” of its total workforce.

The news was first reported by Billboardwho obtained an email from Chairman and CEO Mike O’Neill announcing the layoffs.

According Billboard report, published Monday, August 22, and citing a source close to the situation, around thirty staff members are dismissed.

In the memo to staff obtained by BillboardO’Neill told them he was “writing to let you know of some tough actions we took today.”

The email continued: “After a careful and comprehensive review process, we are reducing BMI’s total workforce by just under 10% through a combination of downsizing and non-recruitment. a number of currently vacant positions. This has impacted most departments and is effective immediately.

Today’s news comes just over a week later Bloomberg News reported that BMI had dropped a planned multi-billion dollar business sale.

BMI had prepared for the potential sale months earlier, hiring Goldman Sachs as an adviser in March to explore strategic opportunities, but Bloomberg News reported that BMI said the transaction “is no longer an avenue we are considering.” BMI executives had hoped to sell the company for at least $1.5 billion.

Elsewhere in O’Neill’s letter, he wrote that the cuts “are necessary to ensure that we are best placed for continued success in the future”.

According to the Billboard article, O’Neill’s letter further stated that “I understand that you may be wondering why, as we regularly highlight how we continue to outperform the competition, this year inclusive, we must take these difficult measures”.

He added: “That’s a good question, but our success doesn’t mean we shouldn’t also take a hard look at our business and make sure we’re operating as efficiently and effectively as possible, by especially as we head into uncertain economic times.”

BMI’s annual collections for the 12-month period ending June 30, 2021 reached $1.361 billion.

By comparison, rival ASCAP reported annual collections of $1.335 billion for calendar year 2021.

From its FY2021 collections ($1.361 billion), BMI paid $1.335 billion to its members; The payment of ASCAP in the 2021 calendar amounted to $1.254 billion.The music industry around the world