UPDATE #3:
- Hands & Co "believe EMI spends too much on marketing the acts already on its roster and not enough on finding new ones...as much as 30% of EMI's 13,000 artists never release an album - which Terra Firma feels is too many unproductive artists, many of whom need to be cut." - (WSJ)
- Employee reaction to Hands' morning presentation mostly positive. (Times UK)
- The Verve joins Coldplay and Robbie Williams in refusing to deliver new product to EMI until the company's plans become clear. (Guardian)
In addition to cutting 1500-2000 jobs, the future focus of a "new" EMI are emerging. According to the company the restructuring will include:
"Repositioning EMI’s labels to ensure they will be completely focussed on A&R and maximising the potential of all their artists"- "Developing a new partnership with artists, based on transparency and trust, and helping all artists monetise the value of their work by opening new income streams such as enhanced digital services and corporate sponsorship arrangements
- "Bringing together all the group’s key support activities including sales, marketing manufacturing and distribution into a single division with a unified global leadership"
- "The elimination of significant duplications within the group to simplify processes and reduce waste"
"The changes, which will be implemented over the next six months, will enable the group to invest more in its A&R operations both to identify and sign promising new artists and to maximise the potential of its existing roster."
The devil will be in the details. Stay tuned as we gather more info on Hand's various meetings today and tomorrow with staff, artists and managers.
More coverage and our commentary here.
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Job Cuts Confirmed Today At EMI
UPDATED: In a morning meeting in London, Terra Firma head Guy Hands confirmed that he will cut 1500 - 2000 jobs as part of an effort to cut costs by almost $400 million. The cuts represent about a third of EMI's 5500 person workforce and will take place over the next 6 months.
EMI "has been struggling to respond to the challenges posed by a digital environment,'' Hands said in the statement. "We believe we have devised a new revolutionary structure for the group that will improve every area of the business.'' EMI currently 19 managers, marketing executives and lawyers for every talent scout, he explained.
Hands has reportedly raised almost $500 million in additional funding and will shift more resources to A&R. He is is promising change in a structure that currently has 19 managers, marketing exec and lawyers for every A&R person.
Some details of the new structure were shared with staff in a morning meeting in London and with manager's this afternoon at an undisclosed location. Hands flies to the US on Wednesday to brief US staff, artists and managers.
EMI lost a record $572 million in the fiscal year ended March 31, 2007. In the U.S., which accounts for about a third of the global music market, EMI had none of the top 10 best-selling albums in 2006, according to Nielsen SoundScan.
HYPEBOT COMMENTARY:
This is not good news for the staff at EMI, but sadly this dramatic shift may be exactly what is needed at all four major labels...
Continue reading "Job Cuts Confirmed Today At EMI" »
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EMI Cuts Rise To 2000. Company To Be Split In Two Divisions
According to sources, EMI will cut 2000 jobs rather than the 1000 reported on Saturday. Other cost cutting measures along with a major cash infusion rumored to be as high as $350 million are also on tap. Full details will be revealed in a live video conference on Tuesday from London.
The company will also be split into two divisions with one handling creative and the other back office. North American head Roger Ames is expected to handle signings and artists in Britain and America with Jean-François Cécillon taking on the role for the rest of the world. Restructuring back-office functions will be handled by Mike Clasper, a former chief executive of airport operator BAA.
More coverage and our commentary here.
唱片獲利衰退 EMI全球裁員兩千人
（2008年1月15日法新電）國際音樂市場受到網路分享以及MP3下載雙重打擊，唱片公司的獲利直直落，旗下擁有披頭四等歌手的全球第三大唱片公司英商EMI音樂集團，新東家「Terra Firma私募基金公司」宣佈，為了挽救營運危機，重整組織架構，將裁員兩千人，幅度高達EMI現有人力三分之一，並且可能縮減藝人發片宣傳經費。
EMI發布聲明說：「這波企業重整預料將導致組織內進行全球人力精簡，人數介於1500人至2000人。」
計劃裁減的人數將佔EMI總職員人數約三分之一；去年8月，私募基金泰拉佛瑪公司（Terra Firma）以32億英鎊併購EMI。
泰拉佛瑪公司的老闆是金融界人士韓茲，該公司希望未來 6個月進行大規模企業重整，每年可節省約兩億英鎊（台幣約 126億）。
EMI旗下歌手包括酷玩樂團，大衛鮑伊、珍娜傑克森、諾拉瓊絲、羅比威廉斯、滾石與辣妹合唱團。
韓茲發布聲明說：「長期以來我們密切關注EMI及其唱片部門面臨的問題，就如同唱片業一樣，公司一直努力因應數位環境帶來的挑戰。」
他又說：「我們今天宣布的改革，將確保這家指標性公司以能賺錢也能永續經營的方式，創造出美好的音樂。」
消息一出，EMI旗下20多位高知名度藝人強力反彈，英國「流行一哥」羅比威廉斯甚至揚言拒絕發新片，來表達抗議；「披頭四」保羅麥卡尼也老早就不發新片，認為EMI只會見錢眼開，不尊重音樂專業。
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