EMI axing 2,000 jobs as CD sales continue to fall

GUY HANDS, the private equity owner of EMI, plans to cut up to 2,000 jobs at the ailing British music company, in a plan to rebuild the group that has sparked fury from some of its biggest acts.

Mr Hands, previously best known for investment in waste management and pubs, yesterday unveiled his plan to make the home to The Beatles more artist-driven after it was hit by online piracy, falling CD sales and a poor release schedule.

In the list of Britain’s biggest-selling albums in 2007, EMI’s highest entry was Lily Allen’s Alright, Still at 26.

The worldwide cuts will come at EMI’s troubled recorded music division, which has 4,500 staff of a group total of about 5,500.

The shakeup, in which between 1,500 and 2,000 jobs will go, is designed to boost its roster of talent and increase internet sales while reducing costs by £200 million (€264m) a year.

In a bid to allow EMI’s labels such as Capitol and Parlophone to focus on finding new artists and promoting digital music, the company plans to bring its marketing, sales and distribution under a single division over the next six months.

But the plans have angered top-selling artists such as Robbie Williams, who questioned whether EMI would be able to devote enough time and money to promote his work.

“The changes we are announcing today will ensure that this iconic company will be creating wonderful music in a way that is profitable and sustainable,” said Terra Firma boss Mr Hands.

The announcement follows a three-month review by Terra Firma which bought EMI last year for £2.4 billion (€3.17bn) after years of speculation about the group’s future.

Terra Firm’s management style has also drawn criticism from its artists and raised eyebrows within the industry.

British group Radiohead left last year, describing management as “confused bulls in a china shop,” while Paul McCartney quit, saying the company was “really very boring”.

“The industry is changing incredibly fast,” said Mark Sutherland, global editor of trade publication Billboard. “Certainly this plan acknowledges those changes and attempts to address them. If they can get the artists to buy in, they’ve got a good shot for success.”