Warner Music Group to Undergo Layoffs as Part of $300 Million Cost-Savings Plan

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Warner Music Group is planning to make job cuts as part of a broader cost-reduction and organizational overhaul; this was communicated to employees in a company-wide memo penned by WMG’s Robert Kyncl on Tuesday.

In a memo scrutinized by The Hollywood Reporter, Kyncl expressed that Warner Music Group (WMG) aims to save approximately $300 million to ensure the company’s longevity and reallocate funds back into the music industry. While Kyncl did not reveal exact numbers, he mentioned that WMG is considering reducing staff by around $170 million. The remaining savings of $130 million will be achieved through cuts in administrative and real estate expenses, as stated in the memo. Many of these changes are expected to occur within the next three months, with the rest taking place during the 2026 fiscal year.

I understand that this news might be challenging and worrying for you, and you’ll likely have numerous questions,” Kyncl wrote. “Our top management team has been brainstorming our future direction and the best way to navigate it. Your local leaders will reach out to you promptly regarding your department and your specific position within the company. We’re disclosing this information early in the process so we can be transparent and considerate throughout. These choices aren’t being made carelessly, and we regret that we may have to part ways with skilled individuals. Rest assured, our actions will be guided by empathy and integrity.

Warner has experienced substantial transformations over the past few years, marked by multiple rounds of layoffs. However, the most prominent shift occurred when Elliot Grainge assumed the role of CEO for Warner’s Atlantic Music Group last year, succeeding longtime executive Julie Greenwald. In addition, WMG’s CEO of recorded music Max Lousada and 300 Entertainment co-founder Kevin Liles also resigned from their positions.

The announcement about cost-cutting initiatives arrives following WMG’s revelation of a $1.2 billion joint venture with Bain Capital to acquire music catalogs. In Kyncl’s memo, he pointed out that M&A and Artist & Repertoire (A&R) are key areas for WMG’s growth strategy. Despite posting disappointing quarterly earnings in May, the company has enjoyed recent success with emerging artists such as Atlantic’s Alex Warren, whose “Ordinary” has been No. 1 on the Hot 100 for four out of the last five weeks, and Warner Records’ Sombr, who currently holds the No. 2 spot on Spotify’s Global 50 chart.

Today, our approach is picking up speed significantly. For the past ten weeks, our artists have occupied half of the Top Ten on Spotify’s Global chart, with only four exceptions where they didn’t claim the No. 1 spot in 2025. In essence, this success can be attributed to our unique ability to enhance effectiveness and efficiency simultaneously, which in turn enables us to pour resources into promising talent, enhance our knack for making stars, and strengthen our capacity for creating immersive worlds.

Read Kyncl’s full memo below:

Hi everyone, 

Two years back, we embarked on a significant transformation journey for our company; it wasn’t about tweaking minor aspects of an outdated structure, but rather constructing a dynamic, forward-thinking, and collaborative business model that mirrors the evolution of music in today’s world.

Currently, our strategy is picking up speed. Over the past ten weeks, our artists have claimed half of the Top Ten spots on the Spotify Global chart and have held the No. 1 position for all but four weeks in 2025. These aren’t just the most popular songs globally right now; they are setting the stage for a lasting collection of hits in the future. Simultaneously, we are witnessing improved growth in our global market share for recorded music and reaching new peaks in music publishing. These achievements stem from our increasing effectiveness and efficiency, enabling us to pour resources into nurturing top talent, enhancing our abilities in artist development, and expanding our capabilities in world-building.

As a gamer, I’m thrilled about our recent victories, but we can’t rest on our laurels. Today, I want to share some crucial steps we’re taking to ensure our continued success and usher in a new era of growth for our company. We’re making strategic cuts to secure our future, with a goal of saving approximately $300 million annually.

$170 million will be saved through adjusting our workforce to enhance agility and effectiveness. Another $130 million will come from streamlining administrative and real estate expenses. These changes will start rolling out over the next three months, with the remainder taking effect in fiscal 2026.

Let’s keep pushing forward, team!

I understand that this news might be challenging and disconcerting for you, and you may have numerous questions. Our Executive Leadership Team has been diligently brainstorming our future direction and the best course of action. Your local leaders will get in touch with you promptly to discuss the specifics about your department and your position within it. We’re disclosing this information early on so that we can be transparent and considerate during the decision-making process. Please know that these decisions are not being taken lightly, and we regret that talented individuals may have to leave. Rest assured that we will strive to handle this situation with compassion and integrity.

As we evolve, we’ll be focused on these core drivers of our success:

We’re putting more money behind the music… via a new growth plan.

  • A&R: Working with the ELT, we’ve sharpened our investment criteria… a more holistic and targeted approach to partnering with the world’s greatest musical talent, across (i) the most culturally potent and highest potential repertoire centers, (ii) globally managed off-roster catalog, and (iii) music publishing. 
  • M&A: We also have an ambitious M&A pipeline, especially for timeless catalogs. Our acquisitions of Tempo and start-up RSDL are good signposts of how we intend on growing both our copyrights and our capabilities. And, as you’ve seen today, we’ve announced an exciting venture with Bain Capital that adds up to $1.2 billion to our catalog purchasing power across both recorded music and music publishing.

We’re becoming a stronger, leaner company… for greater cut-through.

  • TEAM: Our faster, more agile teams of local experts will be backed by a strengthened suite of services across Marketing, Distribution, Catalog, and Merchandising & Direct-to-Fan. This aligns our collective efforts with our clearest priorities, making it easier for great artistry and ideas to shine through. Our recent changes at LATAM and Atlantic Records, following the long-term rejuvenation of Warner Chappell and Warner Records, prove that teams can get leaner, deliver massive No. 1s, and win market share… all at the same time.   
  • TECH: We’ll continue to prioritize better digital tools for artists, songwriters, and employees. For example, we’ll expand the rollout of the WMG Pulse app and add more features to give artists and songwriters insights, while landing the benefits of our financial transformation initiative as well as a vastly improved supply chain and data infrastructure. By simplifying how we work, our WMG One platform will enable deeper focus, stronger collaboration, and more powerful outcomes.

In a constantly evolving field, it’s essential that we consistently enhance our long-term abilities in artist, songwriter, and catalog development. This is the very purpose behind the establishment of this company, a strength we’ve always excelled at, and a key factor in setting us apart in the days ahead.

As we make these changes, we’ll keep you updated frequently. Thank you for your understanding and solidarity. We have some truly exceptional music on the horizon, and I’m confident that despite any obstacles, your dedication to our artists and composers remains steadfast.

Thank you,

Robert

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2025-07-02 00:25