Warner Music Group is reducing its workforce by around 270 jobs worldwide.
The news was shared with WMG employees on Wednesday morning (March 29) in a memo from Warner Music Group CEO Robert Kyncl, which MBW received.
Kyncl writes that in his “conversations with our leaders across the organization, many of them came to the same conclusion – that we must make some difficult decisions in order to take advantage of the opportunities before us to move forward.”
He added that “consistent with that direction,” the company “made the difficult decision” to reduce its global workforce by about 270 employees, or about 4%.
According to Warner’s 2022 Annual Report, as of September 30, 2022, approximately 6,200 people worldwide.
Kyncl notes that Warner is “reallocating resources to new skills for artist and songwriter development and new technology initiatives.”
He added that the company is “also reducing discretionary spending and vacancies to give us additional flexibility for our future.”
Kyncl added: “I want to make it clear that this is not a blanket cost-cutting measure. Every decision has been carefully made by our employees around the world, who have considered the specific needs, skills and priorities of each label, division and territory to prepare us for long-term success.”
“WMG is positioning itself for this new growth phase at the interface of creativity and technology.”
Robert Kyncl
Elsewhere in the memo, Kyncl said, “The music business is brimming with new opportunities: more fans are engaging with artists and songs than ever before, our reach is massive, and new business models are emerging all the time.”
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 the new chief executive officer (effective January 1, 2023).
Kyncl hired high-level employees from YouTube in his first few months on the job. Warner appointed Ariel Bardin to the newly created post of President of Technology in February.
WMG said the New York-based bard will serve as a “key member” of the company’s executive leadership team, overseeing technology and data teams and the development of systems, processes and products.
Bardin was Kyncl’s second ex-YouTube/Google hire since the latter became CEO of WMG in January 2023.
Kyncl in January appointed Tim Matusch – formerly Managing Director, Strategy & Business Operations at YouTube – as WMG’s EVP of Strategy & Operations, in what Kyncl describes as a “new role” at the music company.
Kyncl is, of course, an ex-Google/Alphabet himself, 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.
Hello everybody,
As I mentioned at our first all-hands meeting last month, I am committed to direct and honest communication with all of you. The music business is full of new opportunities: More fans are engaging with artists and songs than ever before, our reach is enormous and new business models are constantly emerging. For this new phase of growth, WMG is positioning itself at the interface of creativity and technology.
In my conversations with our leaders across the business, many of them came to the same conclusion – that we must make some tough decisions in order to take advantage of the opportunities ahead to move forward. Consistent with that direction, we have made the difficult decision to reduce our global team by approximately 270 employees, or approximately 4%. At the same time, we are reallocating resources to new skills for artist and songwriter development and new technology initiatives. We are also reducing discretionary spending and vacancies to give us additional flexibility for our future.
I want to make it clear that this is not a blanket cost-cutting measure. Every decision has been carefully made by our employees around the world, who have considered the specific needs, skills and priorities of each label, department and territory to set us up for long-term success. The head of your department will either hold a town hall or email to explain more about this way forward.
I also realize how unsettling that can be. Saying goodbye to talented colleagues is always difficult. For those of you who will be leaving WMG, please rest assured that we are deeply grateful for your hard work, dedication and everything you have contributed to this company. In all territories, unless you are specifically advised that there will be a review or consultation period, all stakeholders will be heard by their manager, supervisor or People team representative within 24 hours. I know this transition will be difficult, but we are committed to supporting you throughout this process.
At times of great upheaval in our world and society, artists and songwriters who have something original to say, who are up to the task will resonate loudest. Likewise, the rapid changes in our economy and ecosystem create the conditions and opportunities for innovation and breakthroughs. Joining WMG I learned that this is a brave, incredibly resourceful and highly impactful team that I want to have 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 that.
I will have more to say about all of this, including more details on our plan, at our next all hands meeting.
Let’s support each other with empathy and integrity as we go through this process.
Thank you very much,
Robert
Today’s announcement from WMG follows news of layoffs at various companies in the music and technology industries.
Earlier this month, it was reported that Downtown Music Holdings was conducting a new round of layoffs, with the downsizing primarily affecting roles in Downtown’s CD Baby, Downtown Music Publishing, Songtrust, and Downtown Music Holdings divisions.
Previously, Spotify announced in January that it was cutting its global headcount by 6%, while Utopia Music confirmed to MBW in November that it had made a series of layoffs.
US satellite radio service SiriusXM announced in March that it would cut its workforce by 475 jobs, or 8% of its total workforce.
In January, SoundHound, a speech and music recognition company, laid off nearly half of its workforce earlier this month, less than a year after the company went public on the NASDAQ.
In the broader tech business, Twitch recently announced that it will cut more than 400 jobs amid widespread layoffs at its parent company Amazon, which has announced 27,000 job cuts across the company.
Facebook parent Meta announced earlier this month that another 10,000 employees will be laid off at its company, after cutting around 13% of its global workforce in November. The downsizing to date has included a total of 11,000 layoffs, meaning Meta will lay off around 22,000 employees over the two rounds of layoffs.
music business worldwide