Layoffs Begin As Universal Music Takes Over EMI
As expected, layoffs have begun as Universal Music Group begins it's takeover of EMI 10 staffers were let go late last week in EMI's Nashville label offices along with another 50 in distribution. Other staffers were warned they will lose their jobs in the next 30 to 120 days, according to multiple sources. But this is likely just the start of deeper cuts.
At the time of the purchase, UMG chairman and CEO Lucian Grainge said that he anticipated cost savings of $162 million from a combined UMG and EMI.
Most top executives at both companies are apparently safe for now. Analysts speculate that, for now at least, the cuts at EMI may not be massive. EMI staffing is already lean by major label standards. Terra Firma implemented wholesale layoffs of 1500 from a 5500 global workforce after it's 2007 takeover. Most expect the deepest cuts to come from sales and distribution. Additional layoffs in UMG's EU distribution operations are already being planned for the spring or summer of 2013, according to Billboard.
Several EMI distribution executives have reportedly been offered new positions at Universal Music Group Distribution. The included SVP Sales John Nicholas, who has been offered a senior catalogue position, and Joan Kan, who will become label liaison for Capitol.