Electronista: Major music label EMI will slash as many as 2,000 jobs in a bid to sustain itself, company chief Guy Hands revealed today. Although the firm’s music contains only about 4,500 workers, at least one third (1,500) and as many as 2,000 will be let go to reduce the beleaguered label’s costs by as much as €266 million per year. This will also come with a consolidation that brings normally separate distribution, marketing, and sales into a more efficient single group. It should also allow sub-labels such as Capitol or Parlophone more freedom to find and sign new musicians, according to EMI.
The seemingly drastic move has largely been credited to the struggle to adapt to downloadable music,”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,” Hands says.