CEO Robert Kinkkel said in a memorandum of employees on Tuesday that the Warner Music Group will remove an unlimited number of employees as part of the restructuring plan for months to reduce costs.
Kyncl said in the memo that the company’s “future resistance” plan includes reducing annual costs by about $ 300 million, with $ 170 million of those that come from “major dates for agility and influence.” He said that the additional administrative and real estate costs are 130 million dollars will come from administrative and real estate expenditures.
Kyncl said that these cuts are the “remaining steps” for a period of significant change in the company, as previous rounds of demobilization and leadership operations occur in the past two years as it was working to “transfer” the company.
“I know this news is difficult and worrying, and you will have many questions. The executive leadership team has spent a lot of time thinking about our future condition and how we put on the best path forward.” “These decisions are not taken lightly, it will be difficult to say goodbye to the talented, and we are committed to acting with sympathy and integrity.”
It is not clear that the number of employees to be accelerated or what the departments will see, but Kyncl emphasized that the company will focus on increasing investments in its artists, supporting, and merging and acquisition.
Hours before the news of workers’ demobilization, the company announced a joint venture of $ 1.2 billion with Bin Capital to invest in music catalogs. Kyncl said the cooperation will add to the power that is filmed in the company through both the music registered for music and music.
“In a constantly changing industry, we must continue to form our capabilities in developing artists and songwriters and developing the long -term catalog,” he wrote. “That is why this company was created primarily, and this is what we have always been the best of it, and how we will differentiate ourselves in the future.”
In 2024, Warner Music Set 600 employeesOr approximately 10 % of the workforce, and in 2023, 270 jobs were cut off.
Warner Music Group shares closed at $ 27.83, an increase of 2.17 %, on Tuesday.
