Warner Music Group is reducing its global workforce by around 270 roles.
The news was announced to WMG staff on Wednesday morning (March 29), in a memo from Warner Music Group CEO Robert Kyncl, obtained by MBW.
Kyncl writes that, in his “discussions with our leaders across the company, many of them came to the same conclusion – that to take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve”.
He added that “consistent with this direction”, the company has “made the tough decision” to reduce its global workforce by approximately 270 people, or about 4%.
According to Warner’s 2022 annual report, as of September 30, 2022, it employed approximately 6,200 persons worldwide.
Kyncl notes that Warner is “reallocating resources towards new skills for artist and songwriter development and new tech initiatives”.
He added that the company is “also reducing discretionary spending and open positions to provide us with additional flexibility for our future”.
Added Kyncl: “I want to be clear that this is not a blanket cost-cutting exercise. Every decision has been made thoughtfully by our operators around the world, who considered the specific needs, skills, and priorities of each label, division, and territory, in order to set us up for long-term success.”
“WMG is positioning itself for this new phase of growth at the intersection of creativity and technology.”
Robert Kyncl
Elsewhere in the memo, Kyncl said that, “The music business is filled with new possibilities: more fans are engaging with artists and songs than ever, our reach is enormous, and new business models are constantly emerging.”
He added: “WMG is positioning itself for this new phase of growth at the intersection of creativity and technology.”
Today’s news comes three months after Kyncl joined Warner Music Group Corp as its new Chief Executive Officer (effective, January 1, 2023).
Kyncl has already made senior hires from YouTube in his first few months in the job. Warner appointed Ariel Bardin to the newly-created post of President of Technology in February.
WMG said that New York-based Bardin will serve as “a key member” of the company’s Executive Leadership Team, overseeing technology and data teams as well as the development of systems, processes, and products.
Bardin was Kyncl’s second ex-YouTube/Google hire since the latter exec became WMG CEO in January 2023.
Kyncl, in January, appointed Tim Matusch – formerly Managing Director, Strategy & Business Operations at YouTube – as WMG’s EVP of Strategy & Operations, which is described by Kyncl as a “new function” at the music company.
Kyncl is ex-Google/Alphabet himself, of course, having spent over a decade in senior positions at YouTube, most recently as Chief Business Officer, before joining WMG.
You can read Robert Kyncl’s memo in full below.
Hi everyone,
As I mentioned at our first All-Hands meeting last month, I’m committed to direct and honest communication with all of you. The music business is filled with new possibilities: more fans are engaging with artists and songs than ever, our reach is enormous, and new business models are constantly emerging. WMG is positioning itself for this new phase of growth at the intersection of creativity and technology.
In my discussions with our leaders across the company, many of them came to the same conclusion – that to take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve. Consistent with this direction, we’ve made the tough decision to reduce our global team by approximately 270 people, or about 4%. At the same time, we’re reallocating resources towards new skills for artist and songwriter development and new tech initiatives. We’re also reducing discretionary spending and open positions to provide us with additional flexibility for our future.
I want to be clear that this is not a blanket cost-cutting exercise. Every decision has been made thoughtfully by our operators around the world, who considered the specific needs, skills, and priorities of each label, division, and territory, in order to set us up for long-term success. The leader of your division will either be holding a town hall or sending an email to explain more about this path forward.
I’m also acutely aware of how unsettling this can be. Having to say goodbye to talented colleagues is always difficult. For those of you who will be leaving WMG, please know that we’re deeply grateful for your hard work, dedication, and all you’ve contributed to this company. In all territories, except where you are explicitly told there will be a review or consultation period, anyone affected will hear from your leaders, supervisors, or People team reps within 24 hours. I know this transition will be tough, but we’re committed to supporting you during this process.
In times of great disruption in our world and society, artists and songwriters who have something original to say, who rise to the occasion, will resonate the loudest. Equally, the rapid changes in our economy and ecosystem create the conditions and opportunities for innovation and breakthroughs. I learned when I joined WMG that this is a gritty, incredibly resourceful, and highly impactful team that I want by my side every day of the week. We deliver for our artists, songwriters, and labels with laser focus, inventiveness, and care. And now, more than ever, we need to double down on that.
I’ll have more to say about all of this at our next All-Hands meeting, including more details on our plan.
Let’s support each other with empathy and integrity as we work through this process.
Thank you,
Robert
Today’s announcement from WMG follows news of layoffs at various companies in the music and tech industries.
It was reported earlier this month that Downtown Music Holdings is making a new round of layoffs, with the downsizing mostly affecting roles within Downtown’s CD Baby, Downtown Music Publishing, Songtrust and Downtown Music Holdings divisions.
Prior to that, Spotify, in January, said it was reducing its global headcount by 6%, while Utopia Music, in November, confirmed to MBW that it had made a number of layoffs.
US satellite radio service SiriusXM announced in March that it was reducing its headcount by 475 roles, or 8% of its total workforce.
In January, SoundHound, a speech and music recognition company, laid off nearly half of its staff earlier this month, less than a year after the company went public on the NASDAQ.
In the wider tech business, Twitch recently announced it was cutting more than 400 roles as part of the widespread layoffs at its parent company, Amazon, which has announced a total of 27,000 job cuts across the company.
Facebook parent Meta announced earlier this month that an additional 10,000 workers are to be laid off at its company after cutting around 13% of its global workforce in November. The previous reduction in staff totaled 11,000 layoffs, which means that across the two rounds of layoffs, Meta is letting some 22,000 employees go.
Music Business Worldwide
