EMI's new owner to tighten belts

Published on Monday 31 December 2007 20:33

EMI'S new private equity owners are believed to be planning to impose strict rules on artist signings and make sweeping budget cutbacks at the music group, a report yesterday claimed.

Terra Firma, which took EMI private in a 2.4 billion deal in September, is said to be launching a cost clampdown, which could see a number of its 5,500 employees axed this year. Reports claimed the buyout group was also planning to cut marketing budgets by 28 million over the next five years.

The move risks angering EMI's artists, who include Lily Allen, Robbie Williams and Joss Stone, who could fear that marketing cuts would affect record sales. But the cuts are thought to be vital for Terra Firma to meet tough targets set when it bought the firm.