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View Full Version : EMI blame Mariah Carey after sacking 1800 staff



fuzzwuzz
03-21-2002, 02:32 AM
I don't understand. What does this mean for the music? So sad all these people lost jobs. And only ONE person gets the blame? Come on! Kinda reminds me of how Garth gets it too when country music isn't living up to it's supposed promises. But the thing with Garth Brooks is, he stands behind the music for us, not for himself. Yet 'he' gets all the flack. So what's this here with Mariah really all about?

EMI Records have sacked 1,800 people and say Mariah Carey is to blame.

In a broadcast to shareholders over the Internet Chairman and CEO Alain Levy has used the recent payout to Mariah Carey as being a contributing factor to the loss of 1,800 jobs.

At the EMI corporate website explaining the job losses, a statement reads "The cash cost of achieving the savings in Recorded Music will be approximately £110m, which will be taken as an exceptional charge. There will be a further exceptional item of some £92m relating to the write down of loss-making investments and other asset write-offs. This is in addition to the exceptional charge of £38m announced in January in relation to the termination of the contract with Mariah Carey. Therefore, the total exceptional charge for the year is expected to be approximately £240m, of which £142m will be cash and £98m non-cash".

1,800 people are now unemployed "because of Mariah". According to the statement "the majority of these positions will have been made redundant by the end of March 2002, with the remainder by the end of September 2002".

Alain Levy, Chairman and CEO, EMI Recorded Music, said: “David Munns and I arrived at EMI on October 15th, and were faced with the challenge of re-creating EMI Recorded Music, taking into account our outlook on the market and our view of the industry. We are shaping EMI Recorded Music for the future, and positioning it for revenue growth from a much lower cost base and with much better practices".

Speculation is that this is all about a sale. Levy is renowned for his "paint job before a sale" tactics. The moves today will increase the share price of the company, increasing its value and making a sale more profitable. Rumours abound that Microsoft is sniffing around for a music strategy and that EMI would be a good buy to combat their corporate threat of AOL Time Warner.

Also word is that BMG are once again looking under the bonnet of EMI. BMG have a strong hit base, EMI have a great historic base. Again, it is seen as an ideal merger.

The other possibility is Rupert Murdoch's Festival Mushroom Group. FMR have the capital to do the deal and would benefit from an international production base. Currently, it is an Australia and New Zealand only company. FMR had cutbacks just recently with 25 staff losing their jobs. A merger with EMI or complete buy-out would be seen as a positive move and create growth potential for the Aussie indie.



By Paul Cashmere

Pilgrim
03-21-2002, 03:05 AM
Rupert Murdoch:mad::mad::mad:

I CAN'T STAND THAT MAN!!!!!!!!!

He own like everything connected to the media in one way or the other:(

As for the blame, atleast it's Mariah that gets it and not Garth;)

Brian

redstrokes77
03-21-2002, 08:19 AM
Funny they don't blame it on the downloading of music. Let's face it ALL music sales are down. Are fewer people interested in music? I don't think so but if they can get it "free" that's all people think of.

Honestly, I can't blame Garth for getting out of the business when he did. I suppose he saw the writing on the wall.

That being said, I just saw that Whitney Houston inked a deal for 100 million! :eek:

I just don't get it.

deb

Chris Gaines
03-21-2002, 10:59 AM
Originally posted by redstrokes77
That being said, I just saw that Whitney Houston inked a deal for 100 million! :eek:Just what she needs more money for her "addiction" :rolleyes:

LOL
Jason

Pilgrim
03-21-2002, 11:55 AM
She's not addicted :p:p

Haven't you heard that from her own mouth??;)

Brian

fuzzwuzz
03-21-2002, 10:50 PM
oh wow! this was in today's Nashville City Paper. What's this all about? looks like you are right Deb.



British music giant EMI Wednesday said it is cutting 1,800 jobs and axing hundreds of fading stars from its roster in a drive to cut costs and revive fortunes in the down-and-out music industry.

Nashville’s Capitol Records was not immune to the cuts despite being profitable, according to Music Row Publishing’s Web site.

Vanessa Davis, Capitol Nashville’s senior director of media and public relations, confirmed six people were let go, dropping Capitol Nashville’s total to 31 employees. Davis would not confirm the workers who were laid off but did confirm operations here are profitable.

Music Row, however, said it has learned the six workers are: Jim Beavers, director of marketing and new media; Carlton Davis, director of production; Sheila Brown, director of promotion; Kim Stasiak, coordinator of business affairs, Sheri Kennedy, manager of sales; and Scott Feinstein, mail room supervisor.

Capitol's roster includes hot acts Trace Adkins, Keith Urban and Cyndi Thomson, Garth Brooks, Chris Cagle, Jameson Clark, and Mindy McCready.

After making a splash by ditching costly pop star Mariah Carey, EMI said it was putting a stop to its old, lavish ways, axing 20 percent of its staff and dumping 400 B-list artists.

“Because of the emphasis on quarterly earnings and fat bonuses, the industry has forgotten that it should all be about artists and music,” EMI's Alain Levy told a London news conference.

“The industry has not been generating enough superstars. The talent is there, but the industry has lost sight of the time and money required to build stars,” he said.

New Capitol Nashville President Mike Dungan was even more outspoken at the Country Radio Seminar last month, saying the business models of Nashville record labels are completely broken.

Outlining his overhaul after one of the industry's worst years ever, Levy estimated annualized savings of 98.5 million pounds. However, the revamp, Mariah Carey's contract and asset write-downs will cost a whopping 240 million pounds.

That lack of management foresight has frustrated executives here and is believed to be an item of concern.

“We have streamlined the artist roster which I found fairly bloated. For example, we had 49 artists in Finland, and I don't think there are 49 Finns that can sing,” Levy joked.

EMI, the world's third-biggest music group, has been hit more than most after seeing major mergers with rivals Warner Music and BMG collapse, while multimillion-dollar stars failed to score hits.

After issuing two profits warnings the past six months, EMI stuck to its 2001 pretax profit forecast of 150 million pounds Wednesday but said its dividend would be cut in half to eight pence. Analysts cautioned cost cutting would only bring short-term relief, and EMI still faces fundamental long-term problems.

One of those is unearthing a new format to replace the CD and stem widespread piracy that is eating into profits. A merger with another major player could have kept EMI going in the meantime, but regulators have made clear they will not accept further consolidation among the top five music groups.

“Piracy needs to be tackled,” Levy said.

From staff and wire reports. Phil Sweetland contributed to this story.

ProducerJ
03-24-2002, 12:41 AM
It sounds like C/N was lucky to have only lost 6. That's a lot of jobs EMI cut back. (Can I roll my eyes at EMI blaming Mariah? Hello - y'all are the one that gave her that ridiculously expensive contract to begin with!) :rolleyes: there! I just did.

I think Jim was the one who oversaw C/N's website, I keep meaning to ask Brandon, he knew him better than I did. If so it will be interesting to see what becomes of their site.

Sheila Brown is the other name I know from the Nashville list, I know she had at least a few years in at Capitol. :(
J.

fuzzwuzz
03-25-2002, 12:17 AM
Deb, from what I've heard the sales of Christian, gospel, and inspirational music have climbed considerably in the aftermath of Sept. 11th. And when I think about it, it's the country mixed with the inspirational that's been hitting on the charts as #1 such as Alan Jackson and O Brother Where Art Thou. If the industry pays attention to what's happening here they just might give us some much better goods down the pike. Not that it's really bad, but we can do better.