Motown Hit With Layoffs as it Loses Standalone Label Status

Motown Records, the iconic American record label founded by Berry Gordy in 1958, has laid off an unknown number of employees as it re-integrates under the Capitol Music Group umbrella.

The label, known for its chart-topping hip-hop and R&B artists, recently underwent a restructuring after becoming a standalone entity in March 2021.

A spokesperson confirmed the layoffs, stating that some positions had become duplicative as Motown returned to CMG.

"These employees are leaving the company, and our People, Inclusion, and Culture department is helping them find new opportunities - either within or outside of UMG," the statement read.

The future of the label was thrown into uncertainty after ex-chairwoman and CEO Ethiopia Habtemariam departed from Motown in November. Habtemariam oversaw Motown's move from New York to Los Angeles in 2014 when UMG dissolved the Island Def Jam Music Group and moved Motown to the Capitol Tower.

In 2015, Habtemariam signed Motown's partnership with Atlanta-based Quality Control, which brought top artists like Migos, Lil Baby, Lil Yachty and City Girls to the label. This partnership led to Motown becoming a standalone label before returning to the CMG umbrella.

The layoffs at Motown are similar to those made by other music companies in response to the uncertain global economy. Quality Control, Motown's partner, was recently acquired by HYBE America in a deal worth over $300 million, although its recordings remain within the UMG family.