EMI streamlines workforce, cutting 2,000 jobs

EMI recently announced its plans to cut about 2,000 jobs from its Recorded Music division, reducing its staff by one-third.

Terra Firma, a private equity firm, acquired EMI last August for $5 billion. Their proposed cuts are projected to save them about $400 million per year.

"We believe we have devised a new revolutionary structure for the group that will improve every area of the business," said Guy Hands, EMI chairman.

Not all agree with Hands. Artists such as Coldplay, The Verve and Robbie Williams have said they plan to withhold their material for upcoming albums. Paul McCartney has walked away. Radiohead has already seized the first fruits of stepping out on its own with the digital release of In Rainbows.

This essentially confirms the digital movement of the music industry. Terra Firma’s website reports that it plans to make up for the losses of EMI’s slow response to the changing consumer landscape over the past five years. This paring down of labels such as Capitol and Virgin is also intended to open up opportunities for A&R operations to sign additional quality artists to their roster and improving management of those they already have.

Related links:
Billboard: EMI confirms up to 2,000 job cuts

Houston Chronicle: EMI to cut up to 2,000 jobs

Forbes: Robbie Williams Sounds Off

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