EMI Records is expected to announce a staff reduction of up to 2,000 jobs this week.
The BBC is reporting that the UK based record company could announce the reduction as early as tomorrow (Tuesday).The staff trim will be probably the largest by percentage that any major music company has even cut back by. EMI currently has 5,500 staff worldwide. The cutback is expected to see the worldwide staff level reduced to 3,500.
The BBC is also reporting that the marketing budgets for EMI will also be slashed from 20% of projected sales to 12%.
Last year, EMI was brought by equity company Terra Firma for £3.2 billion. The company borrowed £2 billion from Citigroup for the acquisition.
Terra Firma head Guy Hands was given an immediate vote of no confidence by EMI artists. Paul McCartney and Radiohead both left the label. Robbie Williams manager is saying Robbie will not release a new album until the label can work out what they are doing. Coldplay have been reported to also be making their forthcoming album 'Prospekt' their last for the label.
EMI CEO Tony Wadsworth left the company last week after 25 years.
