EMI will miss a $292M earnings target promised to its largest investor Citi by $33M in June according to inside reports published by the Telegraph UK. Now EMI must hit an even higher $350M earnings target by September or face a tough renegotiation with the bank.
But while new EMI head Guy Hands has reportedly raised an additional $486M to help with a promised restructuring, he has thus far not provided details of a plan to improve EMI's fortunes beyond staff cuts of 2000-3000.
Sources put morale inside EMI at an all time low. No one knows where the axe may fall and the new leadership is seen as offering no way forward. Now impossible targets loom large as well. New signings and initiatives are said to be at a standstill.