Sony to Cut 326 Jobs or 60% of EMI Staff

In the wake of cutting 10,000 jobs at Sony’s electronic division due to sagging sales and sold off businesses, Sony is turning its attention towards their acquisition of the U.K. music company, EMI. Sony, who is one of the biggest music publishers in the world with Sony/ATV Music Publishing currently owns 750,000 songs, which include artists like the Beatles and Michael Jackson. EMI on the other hand has some 1.3 million songs, with hit artists like Alicia Keys and Kanye West. The proposed $2.2 billion takeover of EMI Music Publishing which is taking place in Europe is expected to ruled upon tomorrow by the European Commission which if confirmed, will give Sony a 31% market share of the music industry.

Sony believes that such a take over will cost the company $39 million in severance costs and an additional $106 million in restructuring costs during the next two years. In order to combat this, Sony plans to cut 326 jobs or 60% of the EMI staff in the next two years. It’s expected that a 152 people would be laid off during the first year while additional cuts will follow into year two for that total number. By reducing EMI’s 515 staff force, it would “net Sony/ATV $50 million, saving EMI’s operations $70 million.”

“We believe these deals would give Sony and Universal excessive control over the markets for publishing and recordings, over collecting societies, how artists are signed, and how their careers are able to develop,”

Sony reached a deal with Citigroup, EMI’s parent company late last year to split the company between them and Universal Music Group which bid $1.9 billion for the other half. For those wondering how Sony plans to pay for such an accusition while the company faces financial challenges, Sony will only have a 38% stake in EMI while the remaining shares will be paid by four additional investors; Mubadala of Abu Dhabi, Jynwel Capital of Malaysia, Blackstone’s GSO Capital Partners and the Hollywood mogul David Geffen.

If the deal is approved, Sony will own the worlds largest publishing catalogue.