EMI is reportedly preparing to cut more than 1,000 jobs next week in order to cut costs.
The company is expected to announce next week a reduction of more than 10 per cent in the 9,000 staff at EMI Recorded Music. The move could cut annual costs by as much as £100 million, according to the Financial Times.
Goldman Sachs expects EMI to take a £200 million sterling charge as a result of the job cuts.
EMI has, in recent years, been the fifth of the five main music companies in terms of US sales.
The group is also understood to be looking at property disposals and the sale of its stake in HMV Media - either to a trade buyer or through flotation - to help reduce its £1.1 billion debt, the Financial Timessays.
EMI and rivals such as Vivendi have been hurt by slowing economic growth and the copying of music off the Internet.
Since Mr Alain Levy was hired as chief executive of recorded music in October, EMI has cut jobs, dropped artists such as Mariah Carey and David Bowie, and shaken up management.
PA