EMI confirmed today that it will cut up to 2,000 jobs at the company in a planned restructuring of its recorded music division that is expected to reduce costs by up to $394 million (£200 million) per year. EMI chairman Guy Hands admitted that the recorded music division, “like the rest of the music industry, has been struggling to respond to the challenges posed by a digital environment and hopes the reshaping of the company, to take place in the next six months, will help them better address them.

Aside from the job cuts, EMI is hoping to foster better partnerships with its artists, which will include figuring out ways to bring in more income through “enhanced digital services and corporate sponsorship arrangements.”

Other changes include:

—Repositioning EMI’s labels to ensure they will be completely focused on A&R and maximising the potential of all their artists.

—Streamlining support activities such as sales, marketing manufacturing and distribution into a single division.

—Getting rid of duplications within the company to simplify processes and reduce waste.

Update: Reuters has more on the restructuring from the perspective of other labels. The gist: EMI’s moves don’t represent a new opportunity for its rivals, because they’re indicative of the problems facing the entire industry. Said one rival music exec: “No one is rubbing their hands with glee.”

• EMI Restructuring: Job Cuts May Hit 2,000; Dropped Artists; £200m Raise: Reports