EMI cuts 1,800 jobs to cut costs

Music giant EMI says it is cutting 1,800 jobs and halving its dividend pay-out as part of a drive to revive its fortunes.

Music giant EMI says it is cutting 1,800 jobs and halving its dividend pay-out as part of a drive to revive its fortunes.

EMI, the world's third-biggest music company, said today the revamp would reap £98.5 million sterling of annual cost savings but would cost £110 million. Write-downs and other charges will take its exceptional charge to £240 million.

EMI said the majority of the job cuts would have been made by the end of this month. EMI cut its annual dividend for the current financial year to eight pence from 16 pence last year.

The world's top five music giants have been under severe pressure to slash costs and restructure after one of the industry's worst years on record when an economic downturn compounded the effects of waning CD sales and rampant piracy.