Warner Music Group will part ways with approximately 10% of its workforce as part of the company’s latest efforts to keep up with a “constantly morphing” music industry.
Chief Executive Robert Kyncl announced the cuts in a staff memo on Wednesday. The cuts are expected to affect 600 employees, a majority of whom will come from the company’s “owned and operated media outlets, corporate and various support functions,” according to a letter shared with multiple outlets.
“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,” Kyncl wrote. “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.”
The notice mentioned the company is exploring the potential sale of entertainment websites Uproxx and HipHopDX and is shutting down social media publisher IMGN and podcasting brand Interval Presents.
Kyncl stressed that the “difficult choices” about cuts are imperative to the company’s efforts to increase funding to artists and songwriters and to work toward a “sustainable competitive advantage over the next decade.”
Some employees have already been informed about the layoffs, and the majority of affected staffers will be notified by the end of September, the memo said. The latest WMG 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 around the world.
“To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication.” Kyncl said in Wednesday’s memo. “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.”
This story originally appeared on LA Times
