EMI To Cut 1000 Jobs Plus A Commentary
The total has now risen to 2000 job cuts. See up to date details here and read our commentary below.
According to several UK newspapers, 1000 people will loose their jobs at EMI worldwide when Terra Firma’s Guy Hands announces restructuring plans on Tuesday. Other cost cutting measures will also be put into effect.
Robbie Williams and other key EMI artists are refusing to release new product until the label’s plans become clear. Hands is apparently reveling his future plans to staff, artists and managers simultaneously.
Read the full story Guardian story here and Financial Times coverage here.
HYPEBOT COMMENTARY:
This is not good news for the staff at EMI, but sadly just this kind of dramatic shift may be exactly what is needed at all four major labels. Hopefully next week’s announcement will also include real details of Hands plan to move the label group forward with signings, marketing, and new alliances. Some sources hint that the "new EMI" will be more focused in A&R and serving the artist.
Sadly, I’m skeptical that this will prove to be like so many takeovers, buyouts and mergers that we’ve seen on the corporate world that wring savings and profits from existing assets, but do little to do build new ones. I hope I’m wrong.
WHAT DO YOU THINK?
Um, “loose?” Is this IRC?
If Hands is going to drop so many artists and fire 1/3 of its work force ( http://biz.yahoo.com/ap/080113/britain_emi.html ) then what is the rationale for owning/dissolving this company in the first place? What artist in their right mind would want to sign to an EMI-owned label right now (what artists even CAN be signed to their labels right now), much less be signed and know the decreased level of staff support those recordings and catalog will receive?
Hands is naive to think that records can just work themselves via the Internet. Record labels staffs work as champions for artists in the marketplace. Their artists will become marginalized. This man has no idea how to create value from these assets, which are considerable.
I agree. There’s a ton of legwork in setting up an album, and bringing it to market even at the indie level.
The real key to making it work would be for them to invest in an ultra-modern information infrastructure that makes it possible for a few to do the job of many. Betcha that’s not in the program.