Columbia Records Group is expected to scale down its less-than two-year-old imprint C2, as the company plans to reorganize its promotion department.

It is unclear how many C2 staffers will make the move over to Columbia Records and how many will ultimately be let go, sources said.

"(New Columbia Promo kings) Charlie Walk and Lee Leipsner are restructuring the promotion staff at the label," a Columbia Records spokesman said.

C2 will likely remain as an imprint under the Columbia umbrella, sources said.

At the time of its creation in January 1999,CRG said C2 was formed to better service its artists in an increasingly competitive and continually shifting marketplace, further enforcing the company's commitment to long-term artist development. Decisions to release particular Columbia Records Group artists through C2 were made on a project-by-project basis.

Artists who released product on C2 include Ricky Martin, Joey McIntyre, Dovetail Joint and D Generation.

Until recently, Dennis Reese helmed C2's promotion team. Reese exited his post at the imprint this week and is in advanced negotiations to take a high-level position in promotion at Elektra Records, said sources (hitsdailydouble.com 6/27), who added that Reese's official appointment at Elektra is not expected until after the July 4 holiday.

Recently departed executive Jerry Blair, Senior VP Columbia Records Group, formerly oversaw both C2's and Columbia Records' promotion efforts. Blair is said to be in advanced talks to segue to Antonio "L.A." Reid's new Arista Records.

Additional staff changes to C2 and Columbia Records will be announced shortly, sources report.