In an effort to evolve, Warner Music Group is set to cut over 200 employees. The head of the corporation believes these layoffs will result in maximum participation and monetization for their artists and songwriters.
Warner Music Group is an entertainment and record label corporation. It is one of the “big three” recording companies and the third largest in the global music industry. Managing widely known musical celebrities like Ed Sheeran, Bruno Mars, and Cardi B, WMG is a huge company with over 5,500 employees.
On January 1st, Robert Kyncl replaced Stephen Cooper as head of the music label. This past Wednesday, the new CEO sent out an internal memo to staff saying, “we’re reallocating resources towards new skills for artist and songwriter development and new tech initiatives. He also stated, “In my discussions with our leaders across the company, many of them came to the same conclusion – that to take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve.”
After his experience with google social media platform building, Kyncl is gearing his team towards focusing on Technology. He found that being able to build business relationships with online creators will help ensure the video and music platform is a platform for creator monetization.
With this internal memo that went out, Warner Music Group is set to lay off 270 employees, which would be around 4 perfect of its global workforce. The new CEO is insisting that the job cuts are no “blanket cost-cutting exercise” meant to feed through to the company’s bottom line. Kyncl rather believes that these layoffs will push the corporation into new technologies to drive growth.
