EMI Music Plans More Layoffs
EMI Music is drawing up plans for radical cost cuts, including a further reduction in its 3,500-strong workforce, to persuade investors to stump up the £120m that private equity owner Terra Firma needs to retain control of the business.
The plan, which is being devised by a 12-strong executive team, was disclosed last night by EMI Music chief douchebag Elio Leoni-Sceti.
The cost reduction efforts, likely to be overseen by new finance douchebag Shane Naughton, who arrives from United Business Media tomorrow, will amount to cuts of tens of millions of pounds in the division’s cost base.
There is also likely to be a further reduction in the directly-employed workforce, on top of the 3,000 jobs culled by Terra Firma founder Guy Hands in January 2008.
Those cuts followed Mr Hands’s highly-leveraged £4.2bn takeover of EMI Group the previous year.
This time, most of the reduction is likely to come from outsourcing and organisational changes.
The revenue plans involve building up sales at EMI Music Services, the merchandising and licensing arm set up by EMI last year.
The importance of the new plan became clear this weekend as investors told The Sunday Telegraph of their increasing concern about injecting more cash into the embattled music group.
