(UPDATED) Last week EMI reported a $2.4B loss and a March $160M loan payment due CitiGroup. The problem, which started when Terra Firrm paid too much for EMI, leaves the major label group fighting for survival.
In an attempt to put together a restructuring plan that will attract a much needed additional investment from Terra Firma, the company is in high level meetings to cut costs and dramatically grow digital revenue and profits from non-music sales like music merchandise division Loudclothing.
Further reductions in EMI's 3500 strong workforce are also inevitable. The company already reduced staffing by almost 3000 when Guy Hands and Terra Firma bought the music group.
EMI CEO Leoni-Sceti Vows To Fight On
"We will present a compelling new five-year business plan with particular focus on the coming year, according to CEO Eli Leoni-Sceti. "It will involve both an acceleration in revenues coming from product innovation at EMI Music Services and some cost reductions from the introduction of new systems and technology and the elimination of some duplication."
"This will confirm our vision to evolve into a digitally-led music company," he continued. "We have a strong business which is on the right track and that is our best guarantee of our future."
