EMI confirms job cuts

15-01-2008

EMI confirms job cuts
Record label EMI has confirmed that as many as 2,000 jobs are set to go at the struggling company.

The British-based music giant, which counts Kylie Minogue, Pink Floyd and the Rolling Stones among its artists, says the roles will go in its recorded music division.

In a widely-expected statement today, EMI said the cuts are being made to "enable the group to become the world's most innovative, artist friendly and consumer-focused music company".

EMI says that the restructuring will lead to staff cuts of between 1,500 and 2,000, which will help save £200 million each year.

The changes will be made over the next six months, said the group's chairman Guy Hands, who took over the company last summer when it was acquired for £3.2 billion by private equity group Terra Firma.

"We have spent a long time looking intensely at EMI and the problems faced by its recorded music division which, like the rest of the music industry, has been struggling to respond to the challenges posed by a digital environment," Mr Hands said.

"We believe we have devised a new revolutionary structure for the group that will improve every area of the business. In short it will make EMI's music more valuable for the company and its artists alike.

"The changes we are announcing today will ensure that this iconic company will be creating wonderful music in a way that is profitable and sustainable."

As well as the job cuts, EMI says that the changes will include developing a "new partnership with artists, based on transparency and trust" and boost the revenue from digital services and corporate sponsorship arrangements.

It comes after a number of EMI's artists and their managers expressed unhappiness with the situation since Terra Firma took over.

Former Beatle Sir Paul McCartney and chart-toppers Radiohead have already left the record label, with reports that others, including Robbie Williams and Coldplay, may be set to follow them.

EMI has seen its share of the music industry slump in recent years, with rival Universal having a 50 per cent share of the album market last year.

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