EMI Christian Music Group Cutting Employees
EMI Christian Music Group (EMI CMG), a major Christian label that recently gained rights over Midas Records, has eliminated an indefinite number of positions within their company, as reported this past Thursday.
The cuts are a part of a reorganization of EMI’s U.S. music division, but the company affirmed that those affected by the lay-offs could be reassigned to different positions within EMI.
Due to an anticipated 6 to 10 percent drop in revenue in 2006, the company was forced to reorganize and regain funds. With the newly established order, EMI has projected to recover more than $200 million over the course of the year.
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Two regional sales offices in Atlanta and Chicago have also been closed due to the changes. There have been no job losses at Capitol Records Nashville, which is also owned by EMI.
John Styll, the president of the Gospel Music Association, affirmed that the cuts are not a sign of weakness for the Christian music industry. Christian music is facing the same problems as the mainstream scene which has seen increased downloading of music over the web.
"Christian is no different than what's happening in pop or rock," Styll told the Tennessean. "For people who don't think piracy affects the music industry, look at what happened."
Besides the dismissals, EMI CMG will continue on with its merge with Midas Records. The new agreement calls for EMI CMG Distribution to have exclusive worldwide rights to the Christian, general market, and digital retail distribution of Midas Records’ Christian music artists and products.
The deal includes upcoming Christian artist Jessie Daniels and the highly anticipated, newly signed band Rush of Fools.
“Midas Records is an important emerging new music label with a growing roster of creative and relevant artists and we are pleased to partner with them in building their retail presence worldwide,” said Greg Bays, Senior Vice President of Sales and Marketing for EMI CMG Distribution in a statement.
Navarre, Midas Records Nashville’s current general market distribution partner, will continue to distribute the label’s country artist roster.
