British music group EMI announced on Wednesday plans to outsource manufacturing of music and movie discs in Europe and the United States and remove artists from its global roster, resulting in the loss of 1 500 jobs.
”As a result of these changes, EMI’s headcount in its recorded music division will be reduced by approximately 20% (1 500), of which approximately 900 are related to the outsourcing of manufacturing,” it said in a statement to the London Stock Exchange.
The move would save the firm £50-million a year although there would be a one-off cash charge of £75-million, EMI said.
The world’s third-biggest music group said it would cut its artist roster by about 20%, which would affect ”largely niche and underperforming artists”, as it merges a number of its smaller labels in the US and Europe.
”The steps being taken will further improve the company’s financial performance and enable it to continue to succeed in the physical world while fully capitalising on the opportunities presented by its rapidly growing digital business,” the group said.
In a trading update accompanying the statement, EMI said its recorded music sales were close to the previous year’s level and the performance of its music publishing division was ”solid”.
In March 2002, led by newly appointed Alain Levy, the group set out on its first wave of cost-cutting including the loss of 1 800 jobs in its recorded music division and the stripping of 400 artists off its 1 600 strong roster.
EMI, whose acts include the Rolling Stones and Robbie Williams, last year failed to reach agreement with Time Warner over a proposed merger as it looked to slash costs and boost profits in the face of piracy and sliding sales.
An EMI spokesperson said the group employs about 8 000 staff worldwide. — Sapa-AFP