The record company giant takes drastic cost-cutting measures...
Record label giant EMI is to slash 1,800 jobs in a dramatic cost-cutting measure.
The majority of the jobs will go before the end of March, with the rest by the end of December.
The redundancies will cost the company around £110 million. EMI, which employs 10,000 people worldwide, say they will absorb it as an exceptional cost. Combined with £92 million to cover loss-making investments and other asset write-offs already announced, as well as the infamous exceptional charge of £38 million announced in January in relation to the termination of Mariah Carey’s contract, EMI expect to absorb a total cost of £240 million.
The company says the restructuring will save them £98 million a year, Financial Times reports.
Alain Levy, chief executive of recorded music, said: “We are shaping EMI Recorded Music for the future, and positioning it for revenue growth from a much lower cost base and with much better practices.”
It is unclear if the cost cutting will effect any artists on the huge EMI roster. Less profitable acts such as Ame, signed to the I AM imprint, a subsidiary of EMI wing Virgin, have already parted company with the label.