David finally beats Goliath? Reign of majors as we know it is over...

The recent malaise at EMI could soon be followed by layoff rounds at other majors, according to sources. Sources claim possible reductions are ahead at Sony BMG, particularly "on the Sony side." A restructuring would touch the Columbia and Epic labels, according to the information, though action may be "a ways off". Warner Music Group was another label tossed around, though one executive warned that layoff predictions are still in a "chatter stage".

In particular, sinking CD sales have plunged labels into a struggle for survival, despite rapidly increasing digital sales.

Meanwhile, the employment picture remains a bit rocky outside of the labels as well. Intense disruption and consumer change are magical ingredients for entrepreneurs, though the space has serving plenty of highs and lows. That has smaller companies entering, exiting, buying and being sold, while larger companies struggle to concoct meaningful digital strategies.

Against heavy pressure from heavyweights like MySpace, MTV Networks recently shed 250 employees, part of a shift towards new media initiatives.

This means: Highly qualified employees availble and a market ready for disruptive innovation. And exciting times ahead. And quite frankly, I don't think the quality of music will suffer for it - au contraire mon ami....

MTV Continues Shift Towards Digital, 250 Dismissed

The ongoing digital disruption has a dark side, one that is dampening moods at MTV Networks this week. As expected, the Viacom-owned group will lay off 250 staffers, part of a larger shift towards digital opportunities. MTV Networks chairman and chief executive Judy McGrath issued the somber news, and outlined changes across a number of areas. That includes both domestic, US-based departments and overseas divisions. The changes started several months ago with the departure of Viacom chief executive Tom Freston, a near-legend at MTV who was pushed by chairman Sumner Redstone. That was followed by the departure of chief financial officer Michael Dolan, and a number of other high-level MTV Networks executives.

In an email to employees issued Monday morning, McGrath pointed to a shift of resources towards "interactive properties and some of our new networks," and a reduction in others. That is part of a broader restructuring happening across traditional media companies, especially as digital upstarts-turned-giants like YouTube, MySpace, and Facebook gain ground. Meanwhile, the mood remains equally grim at EMI, a company that is now in the throes of a difficult staff reduction. The latest casualties are reportedly coming from the Capitol Records sales department, and other departments have also experienced heavy cuts. Like MTV, the reductions at EMI started with high-level executives, and eventually trickled to the larger staff.

Story by news analyst Alexandra Osorio.