Warner Music will lay off about 1,000 workers and merge some record labels in an effort to cut costs.

The big music group, sold Monday by debt-conscious Time Warner ( TWX) to an investor group led by former Universal Music chief Edgar Bronfman, said Tuesday it would lay off 20% of its global work force and consolidate business divisions of its Elektra and Atlantic groups.

Warner Music, now owned by Bronfman and private equity investors Thomas H. Lee Partners, Bain Capital and Providence Equity Partners, is "continuing its discussions with Roger Ames about a senior management role at the Company," the company added.

The Wall Street Journal reported news of the move in its editions Tuesday, two months after USA Today reported that the group was considering layoffs and label mergers in an effort to save $250 million.

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