WMG To Lay Off 10% Of Staff

• Warner Music Group announced that it will lay off 10% of its staff, or roughly 600 people, in the coming weeks. The company insists that the move is coming from a position of strength and that the savings will be reinvested in the company. As Variety notes, “To support the position of strength argument, the company released its earnings early, which show a record 11% revenue growth for the quarter ended Dec. 31, 2023.”

These pending layoffs were spelled out in a staff letter from WMG CEO Robert Kyncl, which states, in part, “Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing 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 the music.

Our plan includes reducing our workforce by approximately 10%, or 600 people — the majority of which will relate to our Owned & Operated media properties, corporate and various support functions.” Specifically, Kyncl noted, “We’re in an exclusive process for the potential sale of the news & entertainment websites Uproxx and HipHopDX, with more to say on that soon. After a thorough exploration of alternatives, we’ve decided to wind down the podcasting brand Interval Presents and social media publisher IMGN.”

Kyncl’s letter also notes: “We’ve already begun to inform many of the impacted employees, and the vast majority will be notified by the end of September 2024. I recognize this is unsettling news. To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication. We’re fortunate that you’ve been part of the team. We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.”