It is reported that EMI, the world's third largest record group, plans to cut costs by 50 million pounds (approximately 91.33 million U.S. dollars). To this end, it is cutting 1,500 jobs and eliminating underperforming Artists, these artists are mainly new generation bands. Meanwhile, EMI also appointed Jean-Francois Cecillon as chairman and CEO of the company's European region on Wednesday.

Firing underperforming artists

Shares in EMI rose nearly 8% on Wednesday to 274.75 pence, near its 22-month high, after EMI announced it would fire underperforming artists. . Most of the people EMI wants to lay off are artists under its US subsidiary Higher Octave. Currently, EMI's main stars include Robbie Williams and Norah Jones. This adjustment will include a one-off cash charge of approximately ￡75 million, as well as further write-downs and goodwill charges totaling approximately ￡80 million. The expenditure, totaling 155 million pounds, will be accrued from the current financial year ending on March 31.

The record industry is restructuring after four years of declining sales and mounting losses from piracy. EMI's latest cost-cutting initiatives come against this backdrop. The record industry's global sales have dropped from a peak of $38 billion in 1999 to about $30 billion, while losses caused by illegal CD copying and online piracy have reached more than $6 billion. In an effort to combat such piracy, the International Federation of the Phonographic Industry (IFPI) announced earlier this week that it would file lawsuits in four countries.

The five major record companies plan to cut overhead expenses by US$1.3 billion to US$1.4 billion over the next three years. The five major record companies are Universal, Warner, EMI, Sony and BMG.

Closure of some production plants

Among the positions to be eliminated, 900 positions will be realized through outsourcing of CD and DVD production. EMI is currently selling a CD and DVD manufacturing plant in the Netherlands and closing another plant in Illinois. The remaining staff are expected to be cut from the record label and backstage support functions.

Alain Levy, chairman of EMI Music Division, said: "We believe that by working hard to reduce the number of artists, we will increase revenue generation capabilities while cutting costs." Investment analyst Kingsley Wilson said EMI's move was long-planned and reflected the company's mediocre sales in the two regions.

Although EMI has previously claimed that the company's performance is better than the average level of the entire industry, the company said that further "repositioning" is necessary. In the past two years, EMI has reduced the total number of artists under its command from 1,600 to 1,400, and the latest restructuring measures will reduce the total number to a little more than 1,000.

There is no talk of laying off Zhang Yu! That means no cuts! ! ! !