Source:
David
Livingston
/
Getty
Warner
Music
Group
announced
that
they
were
going
to
commence
layoffs
within
the
next
few
weeks
amid
a
pivot
away
from
digital
media.
On
Wednesday
(February
7),
Warner
Music
CEO
Robert
Kyncl
sent
out
a
memo
to
the
staff
informing
them
that
the
company
was
going
to
lay
off
10%
of
its
staff,
or
600
people
in
the
weeks
ahead.
The
announcement
comes
a
day
before
the
release
of
the
company’s
earnings
report
on
Thursday
(February
8).
The
digital
media
division
will
be
the
hardest
hit,
with
Uproxx,
HipHopDX,
IMGN,
and
Interval
Presents
as
Warner
Music
seeks
to
“double
down
on
core
business.”
“These
are
dynamic
platforms,
but
they
operate
outside
our
core
responsibilities
to
our
roster,”
Kyncl
said
in
the
memo.
It
is
believed
that
HipHopDX
and
Uproxx
will
be
sold
off
to
potential
buyers,
while
the
podcast
brand
Interval
Presents
and
social
media
publisher
IMGN
will
be
wound
down.
“This
is
a
pivotal
moment
in
the
evolution
of
this
great
company,”
Kyncl
continued.
“We’ve
already
begun
to
inform
many
of
the
impacted
employees,
and
the
vast
majority
will
be
notified
by
the
end
of
September
2024.”
He
wrote
that
in
knowing
that
the
news
is
“unsettling,”
that
“Warner
Music
would
be
“moving
as
thoughtfully
and
respectfully
as
possible,
so
you
have
the
critical
information
you
need,
and
we’ll
support
you
through
this
transition.”
The
memo
also
contained
numbers
from
the
earnings
report
showing
that
Warner
Music
feels
they’re
making
the
decisions
from
a
stronger
position.
“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,”
Knycl
wrote,
pointing
to
an
11%
revenue
growth
for
the
final
quarter
of
2023.
The
other
preliminary
data
released
showed
a
rise
in
net
income
of
$193
million
versus
$124
million
in
the
quarter
at
that
time
last
year.
The
news
of
the
layoffs
does
come
at
an
uncertain
time
for
the
music
and
media
industry
which
has
suffered
some
similar
stunning
cuts.
Earlier
this
month,
Condé
Nast
announced
that
Pitchfork
would
be
folded
into
GQ
Magazine,
and
Sports
Illustrated
announced
recently
that
they
had
laid
off
most
of
its
staff.
The
Sports
Illustrated
Union
and
the
NewsGuild
of
New
York
are
currently
suing
the
sports
periodical’s
parent
company,
The
Arena
Group.
