EMI will cut 1,500 jobs, axe one fifth of its recording artists and stop making its own CDs and DVDs in Europe and the United States in a bid to cut costs, the music giant says.
EMI, home to the Rolling Stones, Coldplay and Radiohead, also said recorded music sales in the year to end-March 2004 held close to the previous year's levels, despite rampant piracy and competition from other entertainment.
Announcing it would close its U.S. manufacturing plant in Jacksonville, Illinois and transfer its Dutch plant to another firm, MediaMotion, EMI forecast savings of at least 50 million pounds a year.
EMI said it would take a cash charge of 75 million pounds and a non-cash charge of around 80 million, tied to writedowns and its shrinking artists roster, in 2003/2004.
"The time is right to further reposition EMI Music. Exiting manufacturing in our two primary regions of Europe and the US will allow us to lower our costs while flexibly meeting our supply needs," said EMI Music's Chairman Alain Levy.
"We believe that by concentrating our efforts on a tightened roster of artists we will increase our revenue-generating potential while reducing our costs." Niche and under-performing artists would go, EMI said, without giving names.
In recent years EMI has seen two merger attempts blocked by regulators, one with Warner Music and one with Bertelsmann's music arm BMG. Last year it bowed out of the race for Time Warner's music business.