Breaking up a large folder.
I have a large folder of several thousand files in the iTunes directory (latest iTunes on my MPPro). It takes iTunes ages to do anything with it so I want to create some more folders called e.g. All Genre As, Bs, etc. I tried opening Finder to the iTunes music dir. and creating manually all the new folders I needed, copying the appropriate subset of files across and then creating a Playlist the same as the folder name and they appeared and played OK. The Info told me the file was in the new folder. NOTE i did not perform any action in iTunes apart from the above actions to create the Playlists. I then deleted the large folder from within iTunes by selection the album and did CMD Delete. This seemed to remove the large folder and its files to the Trash. BUT the files in the individual folders I created disappeared! Why? I would like to know but essentially how do I safety do what I want to achieve and get rid of the large folder for good leaving the split files intact?
Thanks.
MacBook Pro with Retina display, OS X Yosemite (10.10)