London - Major record label EMI Group on Tuesday announced a major restructuring, that will see between 1,500 and 2,000 of the company’s 5,500 employees let go, and other initiatives the company says will reduce costs by $393 million annually. "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," said EMI chairman Guy Hands, whose private equity firm Terra Firma acquired EMI last year for $4.7 billion.
In addition to the layoffs, the company will merge all of its various sales, marketing, manufacturing and distribution units into a single division.
EMI plans to invest more in its A&R operations, as well as offer new revenue streams for artists through enhanced digital services and corporate sponsorship arrangements.
"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," Hands added.