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EMI Under Pressure, Cuts 2,000 Jobs

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Firstly apologies, with the dregs of CES spilling through into this week and MacWorld diverting our attention like a street hound offered a rump steak, this is a little late - but it is important.

Monster record label EMI has said it will cut up to 2,000 jobs globally - more than one third of its total 5,500 work force, as it looks to reduce costs by a whopping £200m per year.

EMI described four key elements in the radical restructure:

*Repositioning EMI's labels to ensure they will be completely focussed on A&R and maximising the potential of all their artists
*Developing a new partnership with artists, based on transparency and trust, and helping all artists monetise the value of their work by opening new income streams such as enhanced digital services and corporate sponsorship arrangements
*Bringing together all the group's key support activities including sales, marketing manufacturing and distribution into a single division with a unified global leadership
*The elimination of significant duplications within the group to simplify processes and reduce waste

EMI private equity owner, Guy Hands, also went on to say: "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. 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."

So, despite being the brave enough to lead the way with DRM free music (some say its problems made it take the gamble in the first place), nothing still seems to be going right for EMI.

One ray of light has emerged however: irritating, love-me, former Take That member Robbie Williams - who never seems more than a poke and a name call away from his latest emotional breakdown - has gotten the hump and protested at the changes by declaring he will not deliver a new album.

Bless you EMI.

Link:
Press Release

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