Update. Stock shares in EMI rose on Friday after published reports said that on March 20 the music company will announce that it is cutting 1,000 jobs as part of a restructuring plan. EMI has been struggling in a depressed market for recorded music. The company announced last month that its profit in the year ending March 31 would be about $215 million, compared with market estimates ranging $229 million to $296 million. The company attributes these disappointing results to declining sales of recorded music, adverse exchange rates and some specific one-time costs. Last week EMI announced it was closing its compact disc manufacturing plant in Swindon, western England and transferring production to its other European operation in the Netherlands.
EMI has 70 recording labels and 1,500 recording artists, including The Beatles and Sir Paul McCartney. EMI expects that Sir Paul's U.S. tour will increase the sales of his new Driving Rain album. An Oscar win for his song Vanilla Sky could also boost EMI sales. Of course, one of their top sellers remains the Beatles 1 compilation album, which has thus far sold more than 8.1 million units and continues to sell about 9,000 albums per week.
(kindly submitted by PLUGGED correspondent Joan M. Hopkins)
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