270 jobs cut amid “new technology initiative” – ​​The Hollywood Reporter

Warner Music Group, home to the likes of Ed Sheeran, Cardi B and Bruno Mars, is to lay off 270 employees, or 4 percent of its global workforce.

“We are reallocating resources to artist and songwriter growth and new technology initiatives,” newly installed CEO Robert Kinkle said in an internal memo to employees on Wednesday. About 6,200 employees worked at Warner Music last September, according to its annual report.

The former YouTube CEO, who replaced Stephen Cooper at the helm of the music label on January 1, is focusing on technology after building business relationships with online creators on Google’s social media platform and securing the video and music platform. Top platform for creative monetization.

“In my conversations with our leaders in the company, many of them have come to the same conclusion – to take advantage of the opportunities in front of us, we need to make some tough choices to improve,” Kyncl added in the memo. The new Warner Music chief added that the job cuts are not a “blanket cost-cutting exercise” intended to eat into the company’s bottom line, but part of a push toward new technologies to drive growth.

The major label wants to prevent the music industry from repeating the same era of Napster and early illegal digital music downloading, and to lead growth in an era of subscription music streaming services like Spotify and Apple Music.

In February, the major music label hired former Google and YouTube ex Ariel Bardy as president of technology to oversee the company’s technology and data groups as part of Warner Music’s continued global growth.

During Warner Music’s first-quarter analyst call in February, the CEO pointed to investments in new artists and songwriters at the label, which is a major partner for YouTube and streaming app YouTube Music.

“I plan to bring a similar approach to WMG and the industry so that our interests are aligned with our partners and our artists and songwriters can achieve maximum engagement and revenue,” he told analysts.

Kyncl’s note follows in full:

hello everyone.

As I stated at the first All-Hands meeting last month, I am committed to direct and honest communication with all of you. The music business is full of new opportunities: more fans are engaging with artists and songs than ever before, our reach is vast, and new business models are emerging all the time. WMG is positioning itself at the intersection of innovation and technology for this new phase of growth.

In my conversations with our leaders in the company, many of them came to the same conclusion – to take advantage of the opportunities in front of us, we need to make some difficult choices in our evolution. In line with this direction, we have made the strong decision to reduce our global team by approximately 270 people, or 4%. At the same time, we’re putting resources into new talent for artist and songwriter development and new technology initiatives. We are also rationally reducing costs and vacancies to provide more flexibility for the future.

I want to make it clear that this quilt is not a cost-effective exercise. Every decision is carefully made by our operators, who take into account the unique needs, capabilities and priorities of each account, department and territory to set us up for long-term success. Your department leader will then hold a town hall or send an email to explain more about the way forward.

I know very well how difficult this can be. Saying goodbye to talented colleagues is always difficult. To those of you who leave WMG, please say a big thank you for your hard work, dedication and contribution to this company. In all states, unless you are expressly told that there will be a review or consultation period, any affected person will hear from your manager, supervisor, or public group representative within 24 hours. I know this transition will be difficult, but we are committed to supporting you through this process.

In times of great upheaval in our world and society, the artists and songwriters who rise to the occasion resonate the loudest. At the same time, the rapid changes taking place in our economy and ecology create the perfect conditions for innovation and discovery. When I joined WMG, I learned that this was a fierce, incredibly resourceful team that I wanted by my side every day of the week. We deliver laser focus, creativity and care to our artists, songwriters and labels. And now, more than ever, we need to double that down.

I have more to say about all of this at the next all-hands meeting, including more details about our plans.

May we support each other with empathy and integrity as we work through this process.

Thank you,

Robert