Kelly Osbourne
The company was purchased for £44.5 million by Universal Music last month, following financial struggles.
Sanctuary have previously overseen merchandising, concert organisation and general management for acts such as Amy Winehouse, Elton John and Oasis.
A Universal spokesperson said: "Sanctuary Records UK division will no longer continue as a stand-alone, frontline record label. Consultations with employees have begun to minimise redundancies as a result of the restructuring."
The closing of the organisation leaves The Charlatan and Dolores O'Riordan amongst many others, without a label.
