The American group Warner Music, one of the music majors, will cut 10% of its workforce, or 600 jobs, in its media subsidiaries, as part of a $200 million cost reduction plan, a its president and chief executive officer (CEO) announced on Wednesday.
In a memo to employees made public, Robert Kyncl assured that the “plan aims to free up funds to reinvest in music and accelerate our growth for the next decade”, and “the majority of these savings will be reinvested”. “The plan includes a workforce reduction of approximately 10%, or 600 people, the majority across our media properties, head office and various support functions,” he added.
The group, one of the three music giants with Sony and Universal, notably ensures that it has entered into “exclusive negotiations for the possible sales of the information and entertainment sites Uproxx and HipHopDX”. Mr. Kyncl also explains that he has decided to “end the Interval Presents podcast brand and the IMGN social media publisher.”
Sold for $3.3 billion in 2011
The major is today owned by the Access Industries fund of Anglo-American billionaire Len Blavatnik, who bought it in 2011 for $3.3 billion.
Its catalog includes, among hundreds of artists, Ed Sheeran, Cardi B, Christine and the Queens, but also Eric Clapton, Gorillaz, Missy Elliott, Phil Collins, and even Madonna’s old albums. The major owns and operates some of the most well-known labels, including Atlantic Records, Elektra Records, Warner Records and Parlophone.
It also owns the world’s leading music publisher, Warner Chappell Music. The group also announced in 2022 that it had purchased the rights to all of David Bowie’s work, for $250 million, according to media reports.