Warner Music Group announces $170 million in layoffs as part of larger restructuring plan

Warner Music Group volition laic disconnected an unspecified fig of employees arsenic portion of a months-long restructuring program to chopped costs, Chief Executive Robert Kyncl said successful a memo to unit Tuesday.

Kyncl said successful the memo that the program to “future-proof” the institution includes reducing yearly costs by astir $300 million, with $170 cardinal of that coming from “headcount rightsizing for agility and impact.” The further $130 cardinal successful costs volition travel from administrative and existent property expenses, helium said.

The cuts are the “remaining steps” of a play of important alteration astatine the company, Kyncl said, with erstwhile rounds of layoffs and enactment switch-ups happening successful the past 2 years arsenic helium worked to “transform” the company.

“I cognize that this quality is pugnacious and unsettling, and you volition person galore questions. The Executive Leadership Team has spent a batch of clip reasoning astir our aboriginal authorities and however to enactment america connected the champion way forward,” Kyncl said successful the interior memo that was reviewed by The Times. “These decisions are not being made lightly, it volition beryllium hard to accidental goodbye to talented people, and we’re committed to acting with empathy and integrity.”

It’s unclear however galore employees volition beryllium laid disconnected oregon what departments volition spot cuts, but Kyncl emphasized the institution volition beryllium focused connected expanding investments successful its artists and repertoire section and mergers and acquisitions.

Hours earlier the quality of layoffs, the institution announced a $1.2-billion associated task with Bain Capital to put successful euphony catalogs. The collaboration volition adhd to the company’s catalog-purchasing powerfulness crossed some recorded euphony and euphony publishing, Kyncl said.

“In an ever-changing industry, we indispensable proceed to supercharge our capabilities successful semipermanent artist, songwriter, and catalog development,” helium wrote. “That’s wherefore this institution was created successful the archetypal place, it’s what we’ve ever been champion at, and it’s however we’ll differentiate ourselves successful the future.”

In 2024, Warner Music laid disconnected 600 employees, oregon astir 10% of its workforce, and successful 2023, 270 jobs were cut.

Warner Music Group shares closed astatine $27.83, up 2.17%, connected Tuesday.