Full Text:

EMI is facing some tough obstacles on its long road to restructuring the company. They announced in January they would be tearing down label walls and operating with 2,000 less employees. Although EMI representatives claim the process is on plan, sources say there have been unexpected challenges for the label. These problems are appearing in the form of "key man" clauses in artists' contracts, clauses in executive contracts that allow top staffers to leave if their responsibilities change or the company comes under new ownership or management, and challenges meeting deadlines by certain sectors of the company. EMI is making strides after several appointments to new chairs and executives, but is coming along slowly because several people missing deadlines.