Warner Music, one of the prominent record groups in America, has announced that it will be reducing its workforce by ten percent. This reduction translates to a massive layoff of approximately 600 employees spread across its various subsidiaries. This decision is part of a larger plan to save around $200 million, as revealed by the company’s CEO during an announcement made on Wednesday.
During a public communication session with the employees, the CEO, Robert Kyncl, assured that the plan is not merely a cost-cutting exercise. He highlighted that the main objective of the plan is to make funds available for reinvestment in music, with an ambitious goal to accelerate the company’s growth over the coming decade. Furthermore, he emphasized that a significant portion of the savings accrued from this initiative will be reinvested back into the company.
Warner Music, which is considered one of the top three record groups alongside Sony and Universal, also revealed that it is currently in exclusive negotiations for a potential sale of the news and entertainment websites Uproxx and HipHopDX. While the details of these negotiations are yet to be disclosed, the move indicates Warner Music’s strategic decisions to optimize its business model.