More Shakeups For The Music Industry As EMI Slashes 1500 Jobs

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.

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