NEW YORK – (CelebrityAccess) – US-based collection society BMI (Broadcast Music, Inc) is laying off “just under 10%” of its total workforce via a headcount reduction and the decision to leave several current positions unfilled.
Billboard first reported the news and obtained an email sent by President and CEO Mike O’Neill announcing the layoffs. According to Billboard, published Monday (August 22), and citing a source familiar with the situation, around 30 members of staff are being let go.
In the email obtained, O’Neill told them he’s “writing to let you know about some difficult 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 headcount reduction and not filling several current open positions. This impacted most departments and is effective immediately.”
Today’s news comes just over a week after Bloomberg News reported that BMI had scrapped a planned multi-billion dollar company sale. In anticipation of the sale, BMI hired Goldman Sachs as an advisor in March to explore strategic opportunities. But, Bloomberg News reported that BMI said the transaction “is no longer an avenue we are considering.”
Elsewhere in O’Neill’s letter, he wrote that the cuts “are necessary for us to ensure that we are best positioned for continued success in the future.”
According to Billboard’s article, O’Neill’s letter stated, “I appreciate that you may wonder why, when we regularly highlight how we continue to outperform the competition, this year included, we need to take these difficult steps.”
He added: “It’s a fair question, but our success does not mean that we shouldn’t also take a critical look at our business and ensure we are operating in the most efficient and effective way possible, particularly as we head into uncertain economic times.”
BMI’s annual collections for the 12 months ending June 30, 2021, reached $1.361 billion. For comparison, rival ASCAP reported annual collections of $1.335 billion for the calendar year 2021.
