Warner Music Group will part ways with about 10% of its workforce as part of the company's latest efforts to keep up with a “constantly transforming” music industry.
Chief Executive Robert Kyncl announced the cuts in a memo to staff on Wednesday. The cuts are expected to affect 600 employees, most of whom will come from the company's “owned and operated media, corporate and various support functions,” according to a letter shared with several outlets.
“Today we announced a plan to release more funds to invest in music and accelerate our growth over the next decade. To achieve this, we have to make thoughtful decisions about where to place our people, resources and capital,” Kyncl wrote. “So, as part of that plan, we will realize approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind music.”
The notice mentions that the company is exploring the possible sale of entertainment websites Uproxx and HipHopDX and is closing social media publisher IMGN and podcasting brand Interval Presents.
Kyncl emphasized that “difficult decisions” on cuts are imperative to the company's efforts to increase funding to artists and songwriters and work toward a “sustainable competitive advantage over the next decade.”
Some employees have already been informed about the layoffs and most affected employees will be notified by the end of September, according to the memo. WMG's latest cut comes less than a year after the company announced in March 2023 that it would cut 4% of its global staff, affecting 270 of the company's 6,200 employees worldwide.
“To the people who will leave us: they deserve a sincere thank you for their hard work and dedication.” Kyncl said in Wednesday's memo. “We are lucky you were part of the team. “We will move as carefully and respectfully as possible, so that you have the critical information you need, and we will support you during this transition.”
