Let the reign of terror begin.
Executives at Warner and EMI Music were nibbling their nails yesterday as the chiefs of the new Warner EMI Music conglomerate warned at a London press conference that consolidation and cutbacks were the next order of business.
The merged group, which would employ 23,000 people worldwide, will cut 3,000 jobs over the next three years.
Ken Berry, the company’s chief operating officer, said the cuts will mostly come in overlapping operations — such as manufacturing, distribution and back-office areas.
The chiefs, he added, “would handle the process in a considerate and sensitive manner.”
As for the labels, Ames said it was too early to make any decisions, and he will “review the label structure when the time came.”
But sources said that Val Azzoli’s Atlantic and Sylvia Rhone’s Elektra were the most likely to remain intact at Warner. The other Warner labels are Warner Bros. Records, Rhino and Sire.
Of EMI’s labels, chances are Virgin and Capitol will survive, while the others — Parlophone, Priority and Blue Note — will probably be folded into the mix, an industry pro told The Post.
While news of the layoffs set off a wave of concern among staffers at Warner and EMI, insiders close to the deal warned the ink is still not dry, and other potential suitors could still break up the marriage.
Reports of the German media giant, Bertelsman, contacting EMI over the weekend and offering a last-minute counter bid of $9.9 billion to steal EMI out of Time Warner’s grasp left executives at both companies scratching their heads.
A spokeswoman for Bertelsman responded, “We were not and have never been in negotiations with EMI. We are not counter-bidding.”
Warner EMI Chief Executive Officer Roger Ames, as well as Ken Berry, laughed off the alleged takeover bid.
“We haven’t left each other’s side for three days,” said Ames. “I think I’d know if Ken was talking to someone.”
Ames and Berry told The Post that the plan to merge the world’s No. 4 and No. 5 music companies was on track and should gain regulatory approval during the second half of the year.
The news brought back memories of Universal’s $10.4 billion buyout of PolyGram, which caused about 3,000 jobs to be lost.
But one music vet who was squeezed out at PolyGram said the Warner-EMI merger is different.
“For one, the relationship between Ames and Berry goes way back and the structure of the deal calls for them to work together,” said Danny Goldberg, now head of Artemis Records.