EMI, the world's third-biggest music company, today announced plans to cut costs by up to £200m sterling a year, including a worldwide reduction of between 1,500 and 2,000 jobs.
EMI - whose artists include Coldplay, Robbie Williams and Joss Stone - has been struggling with falling CD sales across the industry due to the rise of digital downloading and piracy. The company made pre-tax losses of £263.6m last year.
The group said the restructuring included measures to eliminate 'significant' duplication within the group, focus the group's 40 labels on talent spotting, and maximise existing artist potential. It will also look to help artists open up new income streams such as corporate sponsorship.
EMI said the changes, which will be brought in during the next six months, followed consultation with staff, artists and their managers.
Financier Guy Hands, Terra Firma's chief executive and EMI group chairman, has already signalled that around 400 middle managers faced the axe, as well as hundreds of other marketing and administration staff.
'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,' he said,
'We believe we have devised a new revolutionary structure for the group that will improve every area of the business. In short, it will make EMI's music more valuable for the company and its artists alike. 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,' he added.
The plans to cut costs across the business have angered many of the group's artists, who have gone public with their complaints.
Radiohead have quit the label and existing artists such as Robbie Williams are understood to have threatened to withhold new records and demanded assurances over marketing and distribution.
Williams' manager Tim Clark has described Mr Hands as a 'plantation owner' after he called on artists to work harder, while Chris Martin-led Coldplay are also reported to be reviewing their options.
