Update: EMI has denied The Telegraph's report that it will cut an additional 1,000 jobs. The company said it plans to have 2,700 employees by the end of 2008 and that "the new EMI" will be up and running by the end of June.

The Telegraph just reported that EMI will cut another 1,000 jobs. Those cuts are on top of previously announced plans to cut between 1,500 and 2,000 jobs. About 2,000 jobs -- down from 4,5000 when EMI was purchased -- will remain after the next round of cuts are made.

People familiar with the situation said Mr Hands was looking to cut more jobs at the company because, even after the round of redundancies announced in January, the business will still have more employees generating less revenues than its competitors at Warner Music and Universal.

Insiders speculated that the next job cuts will come in waves throughout the year.

From where I sit, it appears Terra Firma head Guy Hands is content to starve the beast rather than gain strength. For all its talk of improving A&R, which would impact its top line in the coming years, EMI seems to want the same bottom line simply through lower spending. It would have to be a far more efficient operation than currently exists. Cut just enough and EMI should be able to properly develop its artists. Cut too much and it will be undermanned and unable to realize its artists' potential. The wild card is EMI's future organizational structure and creative vision for monetizing its recordings. Just how the company will do more with less is quite a big question mark.