It’s pretty clear by now that record labels are struggling to manage the digital transition. The latest sign is the news that EMI parent Terra Firma has injected an additional $45 million into the company to avoid breaching its debt agreements. In addition, EMI’s CFO will move into a role overseeing the firm’s investments and will be replaced by Terra Firma finance executive Andrew Chadd, according to a report by the Wall Street Journal citing sources familiar with the matter.

SEE ALSO: Earnings: EMI Digital Sales Growing—But By How Much?

The cash injection comes amid aggressive cost-cutting by EMI after Terra Firma bought it for $4.7 billion in 2007. Since the acquisition, Terra Firma has said its goal is to shave about $300 million from the company’s operating costs, and reiterated during its latest earnings report that it was on track to hit that mark. In fact, cost savings of just over $70 million during the last quarter helped EMI achieve profits, before tax and exceptionals of $246 million versus $72.5 million during the prior year’s quarter.

Still, EMI is facing a significant challenge—album sales, which includes full-album downloads as well as CDs—decreased 14 percent in 2008, according to Nielsen Soundscan (single-song digital downloads increased 27 percent in 2008).