Warner Music Group (WMG) announced that it will lay off an additional 150 employees as part of a broader restructuring strategy, bringing the total number of job cuts this year to 750.
The company had previously announced in February that it would reduce its workforce by 600 employees as part of efforts to streamline operations and free up funds for future investments.
The latest round of layoffs, announced on Thursday, will impact teams across various departments, including Warner’s in-house ad sales business and other support functions. WMG now expects to achieve pre-tax cost savings of around $260 million by the end of fiscal 2025, up from its earlier estimate of $200 million. The company will incur approximately $180 million in pre-tax charges related to these measures, which are anticipated to be completed by the end of fiscal 2024.
This restructuring comes as Warner Music, like other major players in the entertainment industry, adapts to evolving market demands. In August, Warner made significant leadership changes within its Recorded Music and Atlantic Music Group units. Julie Greenwald, Max Lousada, and Kevin Liles, key executives at Warner, are set to step down later this month, making way for incoming Atlantic Music Group CEO Elliot Grainge on October 1.
The restructuring has also led to a reduction in Warner’s artist roster. According to sources, Atlantic Music Group has dropped a number of artists in recent weeks, signaling a shift in strategy under Grainge’s leadership. Industry observers speculate that the label may now focus more on nurturing emerging streaming stars rather than aiming solely for long-term cultural icons.
Warner Music’s cost-cutting moves are part of a broader trend within the music industry, as other major companies like Universal Music Group are also undergoing restructuring to improve efficiency and adapt to changing revenue streams. Despite these challenges, Warner remains focused on growing its recorded-music business and driving results for its artists and songwriters.
Warner Music CEO Robert Kyncl addressed the layoffs in an internal memo, thanking the affected employees for their contributions and acknowledging the difficult decisions made as part of the restructuring. He assured staff that the company is committed to supporting those impacted through the transition period.
The Wall Street Journal, New York Post, and Music Business Worldwide contributed to this report.
