EMusic has announced that it is reducing its overhead operating costs by reducing its staff by 66 people, around 36% of its current staff.

A growing trend in the industry, Emusic stated that the corporate restructuring is aimed at reducing expenses and focusing the company on its two core sources of revenue - advertising and promotional revenue through RollingStone.com, and downloadable music sales through EMusic.com.

With the reduction in staff, EMusic stated it is expecting to save an estimated $16 million dollars over the next year.

“We have taken today's actions in order to withstand the combined effect of widespread illegal distribution of digital music and the significant market decline for Internet advertising. Although we are proud of our achievements and our company has been able to show continued progress, we cannot ignore the external challenges we continue to face. In light of these challenges, we have reduced our expenses further with the objective of retaining sufficient cash to see us through to cash flow positive operations." Gene Hoffman, EMusic's president and CEO.