Warner Music plans to lay off roughly 10 percent of its workforce—amounting to around 600 employees—as part of cost-cutting efforts.
According to the filing, the majority of the job cuts will impact workers at the company’s owned and operated media properties as well as corporate, and various support functions.
The company said it expects to incur roughly $140 million in pre-tax charges as a result of the cuts through severance payments and other termination costs. Those costs will be paid by the end of fiscal year 2026, it said.
Warner Music noted the layoffs are part of a broader “strategic restructuring plan designed to free up more funds to invest in music and accelerate the company’s growth for the next decade.”
The layoffs are expected to save the company $200 million by the end of fiscal year 2025, the music giant said. The majority of the savings will be allocated toward increasing investment in Warner Music’s core recorded music and music publishing businesses, as well as new skill sets and tech capabilities, according to the company.
‘Pivotal Moment’ for Warner Music
At the time, CEO Robert Kyncl said those cuts were “hard choices” the music giant needed to make “in order to evolve.”The CEO told employees in the note that the layoffs come at “a pivotal moment in the evolution of this great company” and noted the upcoming year is a year in which the music conglomerate will “double down on our core business and move at an increased velocity to seize the incredible opportunities for music in the new world.”
The company plans to get on the “front foot to create a sustainable competitive advantage over the next decade,” Mr. Kyncl said.
“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,” the CEO said in the memo.
The CEO said the company is also currently exploring the “potential sale” of news and entertainment websites Uproxx and HipHopDX, and will “wind down” the podcasting brand Interval Presents and social media publisher IMGN.
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News of the job cuts at Warner Music comes on the same day the company revealed impressive financial results for the final quarter of 2023; with officials reporting quarterly revenue grew 17 percent—or roughly 16 percent in constant currency—for the period ended Dec. 31, 2023.Net income was also up $193 million versus $124 million in the prior-year quarter, the company said.
“These results reflect the impact of our chart-topping artists, hit-making songwriters, iconic catalog, and laser focus on execution by all our teams,” said Mr. Kyncl in an earnings press release. “As we deliver our plan to accelerate our growth, we are becoming more efficient, increasing operating leverage, and freeing up more funds to invest in music and tech, which in turn will drive further sustainable growth.”
