MUMBAI: A sustained lull, especially in the physical sales department, and the economic meltdown has prompted music label Saregama India to cut down on its staff strength, in what is being termed a restructuring exercise.
Fast paced format/ technological changes are prompting music labels to restructure and review their organization models and the 63 year old company has been no exception. “In view of the enormously challenging economic climate and the rapidly changing dynamics of the music industry in particular, Saregama India Ltd had undertaken an in-depth analysis of its business model, including its overall organization structure,” says a company spokesperson.
The label is also facing a situation where physical sales of music have been de-growing at a steady rate, he revealed.
The spokesperson said, “The results of the analysis revealed that rationalization of investments in terms of people and other related costs in some functions had become inevitable. The business plan for Saregama also warrants an increase in manpower efficiency levels, resulting in several roles getting merged.”
According to sources, a majority of employees asked to exit the company are support staff. Saregama has four regional offices in the metro cities and 13 branch offices. The company operates with over 200 distributors and dealers through a unique network of key accounts and corporate sales.
Saregama’s marketing arms RPG Global Music and Saregama Plc cater to the international music markets that include the UK, USA, continental Europe, Canada, the Caribbean Islands, South Africa, the Middle East, South East Asia, Australia, and New Zealand.
In 1985, the company was taken over by RPG Group from EMI, UK. Effective 3 November 2000 the name of the company was changed from The Gramophone Company of India Limited… to Saregama India Limited. Sa Re Ga Ma provides the largest music repertoire across all genres and languages, which includes the top-recording artists of the past hundred years and some of the greatest names in music.
“In undertaking the manpower rationalization initiative, the company is complying fully with all contractual obligations and is also actively supporting employees in securing alternative career options,” the spokesperson said. The company, however, refused to divulge the exact number of people asked to leave.