Warner Music Group is decreasing its world workforce by round 270 roles.

The information was introduced to WMG employees 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 throughout the corporate, lots of them got here to the identical conclusion – that to benefit from the alternatives forward of us, we have to make some arduous decisions in an effort to evolve”.

He added that “per this course”, the corporate has “made the powerful choice” to scale back its world workforce by roughly 270 individuals, or about 4%.

Based on Warner’s 2022 annual report, as of September 30, 2022, it employed roughly 6,200 individuals worldwide.

Kyncl notes that Warner is “reallocating assets in direction of new expertise for artist and songwriter improvement and new tech initiatives”.

He added that the corporate is “additionally decreasing discretionary spending and open positions to supply us with further flexibility for our future”.

Added Kyncl: “I need to be clear that this isn’t a blanket cost-cutting train. Each choice has been made thoughtfully by our operators all over the world, who thought of the precise wants, expertise, and priorities of every label, division, and territory, in an effort to set us up for long-term success.”

“WMG is positioning itself for this new section of progress on the intersection of creativity and expertise.”

Robert Kyncl

Elsewhere within the memo, Kyncl mentioned that, “The music enterprise is crammed with new potentialities: extra followers are partaking with artists and songs than ever, our attain is gigantic, and new enterprise fashions are consistently rising.”

He added: “WMG is positioning itself for this new section of progress on the intersection of creativity and expertise.”

Right now’s information comes three months after Kyncl joined Warner Music Group Corp as its new Chief Govt Officer (efficient, January 1, 2023).

Kyncl has already made senior hires from YouTube in his first few months within the job. Warner appointed Ariel Bardin to the newly-created submit of President of Know-how in February.

WMG mentioned that New York-based Bardin will function “a key member” of the corporate’s Govt Management Workforce, overseeing expertise and knowledge groups in addition to the event of programs, processes, and merchandise.

Bardin was Kyncl’s second ex-YouTube/Google rent for the reason that latter exec turned WMG CEO in January 2023.

Kyncl, in January, appointed Tim Matusch – previously Managing Director, Technique & Enterprise Operations at YouTube – as WMG’s EVP of Technique & Operations, which is described by Kyncl as a “new operate” on the music firm.

Kyncl is ex-Google/Alphabet himself, in fact, having spent over a decade in senior positions at YouTube, most lately as Chief Enterprise Officer, earlier than becoming a member of WMG.

You’ll be able to learn Robert Kyncl’s memo in full under.

Hello everybody, 

As I discussed at our first All-Arms assembly final month, I’m dedicated to direct and sincere communication with all of you. The music enterprise is crammed with new potentialities: extra followers are partaking with artists and songs than ever, our attain is gigantic, and new enterprise fashions are consistently rising. WMG is positioning itself for this new section of progress on the intersection of creativity and expertise.  

In my discussions with our leaders throughout the corporate, lots of them got here to the identical conclusion – that to benefit from the alternatives forward of us, we have to make some arduous decisions in an effort to evolve. According to this course, we’ve made the powerful choice to scale back our world workforce by roughly 270 individuals, or about 4%. On the identical time, we’re reallocating assets in direction of new expertise for artist and songwriter improvement and new tech initiatives. We’re additionally decreasing discretionary spending and open positions to supply us with further flexibility for our future.

I need to be clear that this isn’t a blanket cost-cutting train. Each choice has been made thoughtfully by our operators all over the world, who thought of the precise wants, expertise, and priorities of every label, division, and territory, in an effort to set us up for long-term success. The chief of your division will both be holding a city corridor or sending an e-mail to clarify extra about this path ahead.  

I’m additionally conscious about how unsettling this may be. Having to say goodbye to gifted colleagues is all the time tough. For these of you who might be leaving WMG, please know that we’re deeply grateful in your arduous work, dedication, and all you’ve contributed to this firm. In all territories, besides the place you might be explicitly informed there might be a evaluation or session interval, anybody affected will hear out of your leaders, supervisors, or Folks workforce reps inside 24 hours. I do know this transition might be powerful, however we’re dedicated to supporting you throughout this course of. 

In instances of nice disruption in our world and society, artists and songwriters who’ve one thing unique to say, who rise to the event, will resonate the loudest. Equally, the fast adjustments in our economic system and ecosystem create the situations and alternatives for innovation and breakthroughs. I discovered after I joined WMG that this can be a gritty, extremely resourceful, and extremely impactful workforce that I need by my aspect each day of the week. We ship for our artists, songwriters, and labels with laser focus, inventiveness, and care. And now, greater than ever, we have to double down on that.  

I’ll have extra to say about all of this at our subsequent All-Arms assembly, together with extra particulars on our plan.  

Let’s help one another with empathy and integrity as we work by way of this course of.  

Thanks, 

Robert

Right now’s announcement from WMG follows information of layoffs at numerous firms within the music and tech industries.

It was reported earlier this month that Downtown Music Holdings is making a brand new spherical of layoffs, with the downsizing principally affecting roles inside Downtown’s CD Child, Downtown Music Publishing, Songtrust and Downtown Music Holdings divisions.

Previous to that, Spotify, in January, mentioned it was decreasing its world headcount by 6%, whereas Utopia Music, in November, confirmed to MBW that it had made numerous layoffs.

US satellite tv for pc radio service SiriusXM introduced in March that it was decreasing its headcount by 475 roles, or 8% of its complete workforce.

In January, SoundHound, a speech and music recognition firm, laid off almost half of its employees earlier this month, lower than a 12 months after the corporate went public on the NASDAQ.

Within the wider tech enterprise, Twitch lately introduced it was chopping greater than 400 roles as a part of the widespread layoffs at its mother or father firm, Amazon, which has introduced a complete of 27,000 job cuts throughout the corporate.

Fb mother or father Meta introduced earlier this month that a further 10,000 staff are to be laid off at its firm after chopping round 13% of its world workforce in November. The earlier discount in employees totaled 11,000 layoffs, which signifies that throughout the 2 rounds of layoffs, Meta is letting some 22,000 workers go.

Music Enterprise Worldwide