Terra Firma set to cut more EMI jobs

Terra Firma, the private equity owner of EMI, plans to cut more jobs at the music company, a source familiar with the situation said yesterday.

EMI had around 5,200 employees when it was taken over by the Guy Hands-led group and this is likely to fall to around 2,700 by the end of the restructuring process.

Redundancies are likely to include about 500 contractors. Most of the other redundancies are likely to be compulsory, the source, who spoke on the condition of anonymity, said.

Terra Firma said in January it planned to cut between 1,500 and 2,000 jobs at its recorded music division in a plan to restructure the group which drew sharp criticism from some of its biggest acts. EMI has been hit hard in recent years by online piracy, falling CD sales and a poor release schedule. It was taken over by the private equity group in a £2.4 billion, or £3.2 billion including debt, deal after years of speculation about the group's future. Terra Firma declined to comment.