Warner Music Group plans to lay off an unspecified number of employees as part of a restructuring initiative aimed to save $300 million annually. CEO Robert Kyncl stated that $170 million in savings will come from reducing headcount, while $130 million will be cut from administrative and real estate expenses. The company previously underwent changes over two years, including layoffs and leadership changes. Kyncl mentioned that the focus will remain on investing in artists and catalog development, alongside a new $1.2-billion joint venture with Bain Capital for music catalogs.
The plan to "future-proof" the company includes reducing annual costs by roughly $300 million, with $170 million coming from "headcount rightsizing for agility and impact."
The cuts are the "remaining steps" of a period of significant change at the company, with previous rounds of layoffs and leadership switch-ups happening in the last two years as Kyncl worked to "transform" the company.
Kyncl emphasized the company will be focused on increasing investments in its artists and repertoire department and mergers and acquisitions.
In an ever-changing industry, we must continue to supercharge our capabilities in long-term artist, songwriter, and catalog development.
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