The world’s third largest music company, EMI, is cutting 1,500 jobs, will drop 1 in 5 of its artists signed and will begin outsourcing its CD and DVD manufacturing to reduce costs, the company announced today (March 31).
EMI owns such labels as Capitol, Virgin, Caroline and Bluenote, is home to almost 300 artists including Dilated Peoples, Norah Jones, Radiohead, Coldplay, Beastie Boys, Janet Jackson, Snoop Dogg and others.
The label declined to announce what acts would stay and what ones would be sent packing.
EMI is estimated to save almost $100 million dollars a year from the cuts, in an attempt to boost profits amid their declining sales.
“These additional steps will more closely align us with the evolution we are seeing in our markets,” EMI Music’s Chairman Alain Levy said. “We believe that by concentrating our efforts on a tightened roster of artists we will increase our revenue-generating potential while reducing our costs, even as we continue to invest in artists worldwide and in developing our digital capabilities.”
Despite blaming bootlegging and illegal file trading for the downturn of fortunes, the company’s sales current fiscal year has seen album sales that match those of last year.
EMI also bought the remaining 20% of Motown founder Berry Gordy’s Jobete Music catalog for approximately $80 million dollars.
EMI bought an initial 50% stake in the lucrative company in 1997 and another 30% a year ago, paying almost $350 million for just the music publishing company.
EMI now owns over 15,000 Motown songs.