EMI Group confirmed plans this morning to eliminate between 1,500 and 2,000 employees, an expected move.
Guy Hands, head of EMI owner Terra Firma, offered an emailed statement after disclosing the details in London. “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 described. In total, Hands is planning to shave £200 million ($391.5 million), according to information shared by the company.
The restructuring also includes the centralization of marketing, sales, and administrative functions. Under the plan, redundant operations at labels Capitol, Virgin and Parlophone will be eliminated, and the emphasis will be shifted towards artist discovery and development, according to the company.
Meanwhile, Terra Firma has reportedly secured an additional £250 million in fresh financing, a considerable accomplishment given tightening credit conditions. Hands outlined a six-month window for the changes.