Spring Break
EMI Plans To Cut 1/3 Of Jobs
Kelley Baskins, 2L
Issue date: 1/1/01 Section: Entertainment
February 2008
Although much of the Hollywood focus has been on the recent effects of the writers’ strike, the music industry is experiencing a change as well.
England-owned EMI recently revealed that there are plans to cut one-third of its jobs in an effort to save $400 million a year. The cut of 1,500 to 2,000 employees will occur over the next six months.
The company reports that the restructuring is an effort to offset losses caused by a drop in CD sales attributed to the popularity of digital music. The restructuring will includ merging the various sales, marketing, manufacturing, and distribution departments together.
“Like the rest of the music industry, [EMI] has been struggling to respond to the challenges posed by a digital environment,” said EMI Chairman Guy Hands. Hands became chairman last year when his private equity firm Terra Firma bought
EMI for $4.7 billion.
As extreme as the cuts may sound, EMI employees have expected the cuts ever since EMI changed ownership but were unsure of when they would occur. The time, unfortunately for many employees, has come.
Although much of the Hollywood focus has been on the recent effects of the writers’ strike, the music industry is experiencing a change as well.
England-owned EMI recently revealed that there are plans to cut one-third of its jobs in an effort to save $400 million a year. The cut of 1,500 to 2,000 employees will occur over the next six months.
The company reports that the restructuring is an effort to offset losses caused by a drop in CD sales attributed to the popularity of digital music. The restructuring will includ merging the various sales, marketing, manufacturing, and distribution departments together.
“Like the rest of the music industry, [EMI] has been struggling to respond to the challenges posed by a digital environment,” said EMI Chairman Guy Hands. Hands became chairman last year when his private equity firm Terra Firma bought
EMI for $4.7 billion.
As extreme as the cuts may sound, EMI employees have expected the cuts ever since EMI changed ownership but were unsure of when they would occur. The time, unfortunately for many employees, has come.
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