SIR Elton John and Beyonce Knowles' record label Sanctuary has axed 175 jobs in a bid to cut costs.

The cut represents a quarter of staff at the company - which music giant Warner recently ended takeover talks with.

Nevertheless, chairman Andy Taylor insists the label is safe.

He says, "Although I am sad to be losing Sanctuary people, I am confident we have a high quality business and, with a much-reduced cost base, I believe we are well-placed to rapidly return to profitability."