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.
