Warner Music will lay off 10% of its workforce. The entertainment company's music division announced Tuesday that it will lay off 600 employees to "free up more funds to invest in music."
The news was announced by the company's CEO, Robert Knycl, in a letter sent to his workers to which was accessed by Variety. In it, the CEO justified the decision to downsize as it was part of its "ten-year plan" and that this 2024 was "a pivotal moment in the evolution of this great company."
We’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade. To do that, we have to make thoughtful choices about where we put our people, resources, and capital. So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025. The majority of these savings will be reinvested, putting more money behind the music. Our plan includes 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.
For that reason, the company decided to dispense with employees working for Uproxx, HipHopDX, IMGN and Interval Presents. In fact, Knycl also stated that they are looking for buyers for two of these brands, Uproxx and HipHopDX.
The layoffs come atop those made by Warner Music in April 2023. At that time, the company announced that it would lay off 270 workers. "To take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve," the company said.
