50cent

Universal Cutting Thousands Of Jobs

Universal Music will

cut 1,350 jobs in an attempt to save $200 million a year to make up for a slump

in music sales.

Universal, the

world’s largest record company, already cut 550 jobs worldwide and plans to

cut another 800, with 190 of them in North America. The cuts will start this

week and go into 2004.

"Like all

responsible companies, Universal Music Group is continually evaluating its business

in order to maintain the most efficient and competitive music company in the

industry and be well-positioned for the future," Universal said in a statement.

The cuts come during

a three year industry wide industry "crisis," which record companies

blame on the internet and CD burning.

"UMG is in

the process of instituting significant cost-cutting initiatives that take into

account the realities of the declining music market to further rationalize the

company’s cost structure around the world," it said.

Universal Music

Group houses such hit acts as Eminem, 50 Cent, Ja Rule, Ashanti and others.

UMG consists of record labels Decca Record Company, Deutsche Grammophon, Interscope

Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, MCA

Nashville, MCA Records, Mercury Records, Motown Records, Philips, Polydor, Universal

Records, and Verve Music Group.

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