Warner Music Group is reducing its global workforce by approximately $270.
The news was announced to WMG staff on Wednesday morning (March 29), in a memo from Warner Music Group CEO Robert Kinkel, obtained by MBW.
Kyncl writes that in his “discussions with our leaders across the company, many have come to the same conclusion — to take advantage of the opportunities that lie ahead, we need to make some tough choices in order to evolve.”
“In keeping with this trend,” he added, the company made the “difficult decision” to cut its global workforce by about 270 people, or about 4%.
According to Warner’s 2022 Annual Reportas of September 30, 2022, was running at approx 6200 people all over the world.
Kyncl notes that Warner is “reallocating resources toward new artist and songwriter development skills and new technical initiatives”.
He added that the company “is also working to reduce discretionary spending and open positions to provide us with additional flexibility for our future.”
Kyncl added, “I want to be clear this is not a total cost-cutting exercise. Every decision has been carefully made by our operators around the world, who have taken into account the specific needs, skills and priorities of each label, department and territory, in order to set us up for long-term success.” “.
“WMG is preparing for this new phase of growth at the intersection of innovation and technology.”
Robert Kinkel
Elsewhere on the note, Kyncl said: “The world of music is full of new possibilities: more fans are interacting with artists and songs than ever before, our reach is massive, and new business models are constantly emerging.”
He added, “WMG is positioning itself in this new phase of growth at the intersection of innovation and technology.”
Today’s news comes three months after Kyncl joined Warner Music Group Corp. as its new CEO (effective January 1, 2023).
Kyncl has already recruited great YouTubers in his first few months on the job. Warner eye Ariel Bardeen was appointed as the new Chief Technology Officer in February.
WMG said the New York-based Bardeen will serve as a “key member” of the company’s executive leadership team, overseeing technology and data teams as well as systems, operations and product development.
Bardeen was Kyncl’s second ex-Youtube/Google Since the last CEO, he became CEO of WMG in January 2023.
kinkle, In January, appointed Tim Matusch—formerly Managing Director, Business Strategy and Operations at YouTube—was appointed as Executive Vice President of Strategy and Operations at WMG, which Kyncl described as a “new job” at the music company.
Kyncl was previously at Google/Alphabet, of course, having spent more than a decade in senior roles at YouTube, most recently as Business Director, before Join WMG.
You can read Robert Kinkel’s memo in full below.
Hello all,
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 filled with new possibilities: more fans are interacting with artists and songs than ever before, our reach is massive, and new business models are constantly emerging. WMG is preparing for this new phase of growth at the intersection of innovation and technology.
In my discussions with our leaders across the company, many of them have come to the same conclusion – to take advantage of the opportunities that lie ahead, we need to make some tough choices in order to evolve. In keeping with this trend, we made the difficult decision to reduce our global team by approximately 270 people, or approximately 4%. At the same time, we reallocate resources toward new skills for developing artists, songwriters, and new technical initiatives. We are also working to reduce discretionary spending and open positions to give us additional flexibility for our future.
I want to be clear that this is not a comprehensive cost-cutting process. Every decision is carefully made by our operators around the world, who take into account the specific needs, skills and priorities of each designation, department and region, in order to set us up for long-term success. Your department leader will hold a town hall or send an email to explain more about this path forward.
I also fully understand how unsettling this can be. It is always difficult to say goodbye to talented colleagues. For those of you who will be leaving WMG, please know that we are extremely grateful for your hard work, dedication, and all that you have contributed to this company. In all areas, except where you have been expressly told there will be a review or consultation period, any affected person from your leaders, supervisors or people team representatives will be heard within 24 hours. I know this transition will be difficult, but we are committed to supporting you through the process.
In times of great upheaval in our world and society, artists and songwriters who have something original to say, and who rise to the occasion, will resonate most. Likewise, rapid changes in our economy and ecosystem create conditions and opportunities for innovation and breakthroughs. I knew when I joined WMG that this team is brave, incredibly resourceful, and very influential and I want them by my side every day of the week. We service our artists, songwriters, and labels with laser focus, innovation, 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 the next All-Hands meeting, including more details about our plan.
Let’s support each other with compassion and integrity as we work through this process.
Thank you,
Robert
Today’s announcement from WMG follows news of layoffs at several companies in the music and technology industries.
He was mentioned Earlier this month, Downtown Music Holdings made a new round of layoffs, with the downsizing affecting mostly roles within its CD Baby, Downtown Music Publishing, Songtrust and Downtown Music Holdings divisions.
Before that , Spotifyin January, he said Reducing its global population is up 6%, while Utopia Music, in November, Certain To MBW she has made a number of layoffs.
American Satellite Radio Service SiriusXM Announced in March that it was reduce the number of its employees 475 roles, or 8% of the total workforce.
In January, SoundHound, a speech and music recognition company, announced laid off – laid off temporarily nearly half of its employees 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 was cutting off More than 400 roles As part of the large-scale layoffs at the parent company, amazon, which announced a total of 27,000 jobs across the company.
Facebook the parent is dead announce Earlier this month an additional 10,000 workers will be laid off at her company next to cut About 13% of its global workforce in November. The previous employee reduction totaled 11,000 layoffs, which means that over the two rounds of layoffs, Meta allowed about 22,000 employee cuts.
Music business around the world