Dominic Rushe and James Ashton
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to The Sunday Times
UP to 2,000 jobs at EMI – more than one in three of the workforce – are at risk under a radical restructuring of the music group drawn up by private-equity boss Guy Hands. Thousands of artists will also go from EMI’s 14,000-strong roster.
The departures are a key part of a plan, to be unveiled on Tuesday, to revive the firm, which is struggling against an industry-wide fall in CD sales.
Hands must also confront angry managers for some of the world’s biggest rock and pop acts, who have formed their own group, the Black Hand Gang, to protest against the changes.
The job cuts will be primarily in EMI’s recorded-music division, which employs 4,400 people. The talent team, A&R, which stands for artists and repertoire, will not be hit. Sources say the £130m that EMI Music spends on artist support every year is excessive for a division that makes profits of £60m.
The coordinated attack was the idea of Tim Clark, whose IE:music represents Robbie Williams. Clark described Hands as behaving like a “plantation owner” after the financier said stars were not working hard enough. In an e-mail to other managers of EMI artists on Friday, he urged them to “turn up in force” and “demand answers to hard questions” at the briefing.
Clark said Williams would not deliver another album for EMI “until he is convinced that the company can do a proper distribution and marketing job”. Cold-play, one of EMI’s top bands, is also reviewing its options.
Hands’s company, Terra Firma, bought EMI for £3.2 billion last summer.
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Robbie Williams could himself act like a corporation. His Robbie Williams brand would become just one in a portfolio of RW-related brands. The brand that signed to EMI could then "reposition" itself down market, delivering an endless stream of MOR covers (the kind of songs fund managers dance to at office parties), while the more representative creative "product" could be reassigned to a separate brand, owned by Williams himself. Likewise, all "live product" such as concerts and tours would belong his RW-Live brand. That way, the fund managers (God help us) could be left to do what they do best (count beans and dance at parties) and the artists could concentrate on the creative side of things, each being rewarded commensurate with the value of their input. Happy counters, happy artists, happy audiences.
David Masu, Zürich,