Yesterday Sony BMG revealed its plans to merge two of its Nashville-based labels, RCA Label Group and Sony Music Nashville.

Billboard called it a "shocker" (though one can never be too shocked when a post-merger company looks to cut costs) and quoted from an internal memo sent by chief executive Rolf Schmidt-Holtz. The company, wrote Schmidt-Holtz

"(Is) combining the resources of its two Nashville operations in order to create a single powerhouse entity, which will be known as Sony BMG Nashville. With this move we will be better positioned to intensify our efforts in the areas of A&R and artist development, and to meet the challenges of a constantly evolving and highly competitive marketplace."

The new label group will be helmed by Joe Galante, who Schmidt-Holtz calls "a proven leader with tremendous vision, drive and passion." Galante was the chairman of the RCA Label Group Nashivlle.

An article at the Tennessean says Sony Nashville chief John Grady has left the company as part of the management shakeup.

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