EMI UPDATE: Many More Jobs On The Line
Hundreds more jobs could be cut soon as top EMI executives prepare a plan to save the struggling company. EMI owners Terra Firma must get the votes of 75% of its investors – who have already lost most of their initial £1.8 billion investment – to inject £120M ($183M USD) in additional funds by June 14th or risk loosing control of the company to lender CitiGroup.
New CEO Charles Allen is expected to tell investors this week that profits at EMI Music could reach £300M by 2015 vs £200M in the last 12 months, according to The Times. But to achieve that, EMI must cut hundreds more jobs as well as find a way to lease EMI’s U.S. music catalog to a rival label group for the next 5 years. The plan would cut another £100m from EMI Music’s £500M operating budget and lead to the shut down of most of its U.S. operations. EMI has already cut 2000 jobs worldwide.