Terra Firma Ponders Job Cuts At EMI

LONDON (CelebrityAccess MediaWire) — EMI is reportedly considering deep job cuts and even pondering divesting the CD distribution unit as the label group's new owners struggle to find a way to return to profitability, the Financial Times reported.

A spokesman for the Terra Firma affirmed that the label group was conducting a strategic review of EMI's operations for cost-savings and that an announcement regarding the outcome would be made early next year. When questioned about what the nature of the adjustments might be, the spokesman said that "anything and everything is a possibility."

That being said, clearly not every aspect of EMI is under consideration as a candidate for divestiture. Guy Hands has recently stated that he plans to hold onto what he considers to be two key units, the recorded music and music publishing operations. While these two divisions are likely to remain under the EMI umbrella, the employees of said divisions are not as safe.

The Financial Times is also reporting that Guy Hands has also been shopping EMI around to other hedge and equity funds with the hopes of diluting Terra Firma's stake, thereby ameliorating their risk exposure. "This is normal course of business – all major private equity deals are syndicated in this way," a Terra Firma spokesman told the Times. – CelebrityAccess Staff Writers

Related Post