We have made several very important organisational changes in the last few weeks, and more will come in the weeks ahead

Alain Levy, EMI recorded music boss

The revision follows the controversial termination of EMI's contract with Ms Carey, whose last album, Glitter, was poorly received.

And it comes amid sweeping changes to management at the firm's recorded music division, home to 1,500 artists including Gorillaz, Robbie Williams and Paul McCartney.

EMI will on 20 March brief analysts on details of the reform programme, which division head Alain Levy has spearheaded since his appointment in October.

All change

Mr Levy was, while president of Polygram, credited with turning it into the world's biggest music firm, and also led its expansion into film projects such as Four Weddings and a Funeral.

At EMI, he last week revealed senior appointments to North American operations, and the transfer of the US headquarters of Virgin Records, owned by EMI, from Los Angeles to New York.

We are confident that the group can make substantial progress

Eric Nicoli, EMI chairman

In Latin America, where music sales have been badly hit by economic malaise, Mr Levy has brought back Luiz Boaventura to head Brazilian operations.

Mr Boaventura restructured the operations in the late 1980s.

Changes have also been made to the top management of EMI recorded music divisions in Continental Europe and the UK, with Paul Conroy, who oversaw the launch of the Spice Girls, leaving Virgin Records last month.

EMI also on Tuesday announced the appointment of new chief financial officers for the group and recorded music division.

'Wrong' practices

Mr Levy said. "We have made several very important organisational changes in the last few weeks, and more will come in the weeks ahead.

"There's no doubt that some of our difficulties are a function of music industry practices.

When people don't know whether they will have a job or not they don't usually perform at their best

Paul Richards, analyst Numis Securities

"We're committed to finding new ways to do business and to placing long term, sustainable development at the top of our agenda."

EMI group chairman Eric Nicoli said: "The actions taken are already making a positive impact, the emerging strategic plan is compelling, and we are confident that the group can make substantial progress."

Analysts were little surprised by EMI's acknowledgement that the business was performing poorly.

"They're in the middle of a major restructuring at the moment, and when people don't know whether they will have a job or not they don't usually perform at their best," said Paul Richards, analyst at Numis Securities.

"People [investors] have written off this year. It's next year that counts," he added.

In the City, EMI shares fell 11% to 290p in early trade on Tuesday, before recovering to close down 6.4% at 305p.

Chrysalis stumbles

Investors also gave a tepid welcome to a trading statement by rival music group Chrysalis, whose artists include Lightning Seeds, Moloko and Portishead.

Chrysalis, which has expanded heavily into radio, blamed an advertising slump after the 11 September attacks for an 11.8% fall in revenue over the last four months of 2000.

Revenues last month were 8.4% higher than in January 2000, chairman Chris Wright said.

Shares in Chrysalis fell 7p to 233p in early trade on Tuesday, before closing down 1p at 239p.