Warner Music Group reveals expected financial impact of layoffs at Atlantic

Warner Music Group is undergoing a year of transformation by cutting costs, reducing its workforce and restructuring some label groups to save about $260 million annually, the company disclosed on Thursday (Sept. 19).

According to a Warner Music Group SEC filing detailing the downsizing and the financial impact of the company's current restructuring plan, the total job cuts increased from 600 after the February announcement to 750 people with Thursday's update. The filing did not specify that all 150 additional job losses could be attributed to the Atlantic Music Group layoffs announced Thursday. Bulletin board“The original layoff report said between 150 and 175 people would be affected.

WMG also updated its year-over-year pre-tax cost savings from “approximately $200 million” to “approximately $260 million,” meaning the company expects to save an additional $60 million annually. Restructuring plan severance costs increased $70 million to $210 million. The “substantial majority” of severance and other termination costs from this year's restructuring are expected to be paid by the end of fiscal 2026, according to the filing. WMG will pay about $30 million in the current fiscal year (ending Sept. 30) and about $85 million in fiscal 2025.

“WMG is rapidly transforming this year into a fast-paced, fiercely competitive industry,” CEO Robert Kyncl he wrote Thursday in an internal memo to staff. “As always, delivering great results for artists and songwriters is our highest priority in all of our options.”

WMG began its restructuring plan in February, announcing that it would sell its owned and operated media properties and eliminate some corporate and support roles. As Bulletin board reported at the time, WMG cut its workforce by 10% of the company's workforce, or 600 people. However, not all of this staff reduction was the result of layoffs. Uproxx, HipHopDX and Dime Magazine have been sold to a duo of media veterans: Uproxx's founder and CEO Jarrett Meyer and founder and CEO of Complex Rich Antonielloin joint venture with a musician William.

This latest round of layoffs comes two weeks before 10K Projects founder and CEO Elliot Grainge takes over as CEO of Atlantic Music Group on Oct. 1 (the first day of WMG's new fiscal year). President/CEO of Atlantic Julie Greenwald announced her departure just five days after WMG announced that Grainge would take the helm. Separately, Max Lousada, the London-based Managing Director of Recorded Music for WMG, has resigned and his role has been eliminated. Kevin Liles, current president and CEO of 300 Elektra Entertainment, is also leaving the company without a replacement.

Atlantic's ranks were further thinned Thursday with the departures of high-level executives at both Atlantic Records and Elektra Records, including Atlantic executive vp/GM Paul Sinclair and Black music co-president Michael Kyser, as well as chief marketing officer Grace James. head of press and media Sheila Richman and head of tour Harlan Frey. At Elektra, head of business and legal affairs Margo Scott, head of marketing Katie Robinson, head of sales and streaming Adam Abramson, head of promotion and streaming Aimee Vaughan-Fruehe and co-head of Roadrunner Records Chris Brown were also fired.