Bertelsmann Sees 'Painful Cuts' In Sony-BMG Merger

FRANKFURT, July 20 (AFP) - The merger of Sony Music and BMG could entail "painful cuts", the head of BMG`s parent company, the German media giant Bertelsmann, cautioned on Tuesday, amid press reports as many as 2,000 jobs could be on the line.
"At the end of the unification process, during which painful cuts cannot be avoided, Sony BMG will emerge as a first class, global music company," Bertelsmann chief Gunter Thielen wrote in a letter to employees.
Last week, the Financial Times reported that Sony Music and BMG were planning to axe a quarter of their joint workforce, or 2,000 jobs, once their tie-up had been approved by the competition authorities.
The two companies hope their tie-up will open up synergies of around 280 million euros (347 million dollars).
Separately, BMG chief Rolf Schmidt-Holz said Tuesday that his company turned in the best six months of its history this year thanks to album sales of stars such as Avril Lavigne and Usher.
Bertelsmann is scheduled to publish its first-half results on September 8.