Warner Music Group (WMG) has announced the final stage of its restructuring efforts, with an unspecified number of layoffs set to save the company $170 million out of a total $300 million in savings.
Multi-step process:
Phase One of Warner’s restructuring plan came in February 2024 when WMG announced a 10% reduction of its global workforce (approx. 600 roles), which was later increased to 750.
As per Music Business Worldwide, this was expected to save WMG $260 million.
The latest round of “headcount rightsizing” is expected to save $170 million; an extra $130 million of savings will come from reducing admin and real estate expenses.
The two phases of restructuring should result in a total annual saving close to $500 million.
The path forward:
In a letter to staff, CEO Robert Kyncl highlights four key areas in which WMG will be investing heavily in the future.
They include:
“An ambitious M&A pipeline, especially for timeless catalogs.”
An A&R strategy that involves “a more holistic and targeted approach to partnering with the world’s greatest musical talent.”
“Faster, more agile teams of local experts... backed by a strengthened suite of services across Marketing, Distribution, Catalog and Merchandising & Direct-to-Fan.”
Prioritizing “better digital tools for artists, songwriters, and employees.”
Other investments:
WMG’s focus on M&A is backed by yesterday's announcement of a $1.2 billion joint venture fund with Bain Capital to buy music copyrights.
