Disney (DIS) is on a cost-cutting tear.The company is shuttering their Nashville music label, Lyric Street Records. The popular, Grammy-award winning Rascal Flatts is under the label, and will be moved elsewhere in Disney’s music portfolio.
The news comes after Disney recently shut down a facility for ImageMovers Digital, a company co-founded by “A Christmas Carol” director Robert Zemeckis and partially owned by Disney.
Read more from the Associated Press:
LOS ANGELES (AP) — The Walt Disney Co. says it is closing its Nashville recording label, Lyric Street Records, and will transition country music band Rascal Flatts to another Disney label.
The phased shutdown will result in the layoff of about 20 to 25 employees after they finish promoting existing albums. It comes amid a cost-cutting overhaul at Disney’s studio, which oversees the music group.
Bob Cavallo, chairman of the Disney Music Group, said Wednesday that the company needs to find alternative ways of marketing its artists given the “changing nature of the music business” and streamlining at the studio.
Other Disney music labels, such as Hollywood Records, which promotes the music of stars Miley Cyrus, Jonas Brothers and Demi Lovato, are unaffected by the announcement.
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