Universal Music, the world’s largest music group, announced 1,350 job losses yesterday as the industry continues to struggle with the consequences of rampant piracy. Universal said it would reduce its 12,200-strong workforce by 11% in the face of seemingly uncontrollable demand for illicit internet downloads and counterfeit CDs.
Doug Morris, chairman of Universal Music, said the cut-backs were “evidence that what people are doing is not a victimless crime”. Universal, whose artists include U2, Beck and Eminem, said it had already cut about 550 jobs this year and would axe a further 800 by the start of 2004.
EMI last year found itself in the position of cutting 1,900 jobs and terminating the contracts of 400 artists as it tried to align a bloated cost base with plummeting revenues. Earlier this year, Sony said that it would reduce staff numbers by 1,000, while Warner and Bertelsmann-owned BMG have trimmed their workforces. Time Warner is considering selling its music business to EMI to create a group controlling 23.9% of the music market, while BMG has admitted holding discussions with the main groups except Universal. Universal Music slipped into a loss of €42m for the first half of the year, with revenues falling 24.5% to $2.2bn. It blamed the revenue slide on the continued depression in the global record market and a weak release schedule.
Source: http://www.guardian.co.uk/business/story/0,3604,1064775,00.html
