The Wall Street Journal-20080115-Terra Firma Plans EMI Cost Cuts

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Terra Firma Plans EMI Cost Cuts

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Terra Firma Capital Partners Ltd. plans to cut costs at EMI Group Ltd. by as much as GBP 200 million ($391.3 million) a year through job reductions and by centralizing sales, marketing and administrative functions at the music company, according to a person familiar with the situation.

The private-equity firm, which bought EMI last year for GBP 3.2 billion, plans to strip EMI's individual record labels such as Capitol, Virgin and Parlophone of many of their responsibilities. Most or all of the labels' sales and marketing staff will become part of a global structure reporting to EMI's headquarters in London, according to the person.