Warner Music Announces Layoffs Of 600 Employees

Warner Music CEO Robert Kyncl announced plans to divest owned and operated digital media, impacting platforms like Uproxx and HipHopDX.

Variety reports that Warner Music CEO Robert Kyncl announced plans to divest owned and operated digital media, impacting platforms like Uproxx and HipHopDX. The decision comes on the eve of the company’s earnings report and is accompanied by a broader initiative to streamline operations.

Kyncl, in a memo to staff, stated, “These are dynamic platforms, but they operate outside our core responsibilities to our roster.” Uproxx and HipHopDX are being considered for potential sale, while Kyncl has opted to wind down the podcasting brand Interval Presents and social media publisher IMGN.

Kyncl characterized this move as a pivotal moment in the company’s evolution, expressing the intention to double down on the core music business. Early insights into numbers indicate a noteworthy 11% growth in normalized revenue over the last quarter. However, Kyncl emphasized the need for thoughtful decision-making about resource allocation, leading to a plan to realize approximately $200 million in annualized cost savings by the end of September 2025.

“As part of that plan, we’ll be reducing our workforce by approximately 10%, or 600 people – the majority of which will relate to our Owned & Operated media properties, corporate, and various support functions,” Kyncl stated. The move aligns with a broader strategy to reinvest the majority of the savings back into the core music business.

Acknowledging the news’s unsettling nature, Kyncl assured employees that the company would handle the transition as thoughtfully and respectfully as possible. He mentioned that many impacted employees have already been informed, with the majority expected to receive notifications by the end of September 2024.

This strategic realignment follows the company’s last round of layoffs in March 2023, shortly after Kyncl assumed the CEO role in January. Those layoffs, affecting approximately 4% of the staff or around 270 employees, were framed as necessary adjustments to ensure the company’s survival.