Warner Music Group to Undergo Layoffs as Part of $300 Million Cost-Savings Plan

Warner Music Group to Undergo Layoffs as Part of $300 Million Cost-Savings Plan

Warner Music Group will undergo layoffs as part of a wider cost-saving and restructuring initiative, WMG Robert Kyncl told staff in an internal memo on Tuesday.

In the memo, reviewed by The Hollywood Reporter, Kyncl wrote that WMG is looking to reduce costs by about $300 million to “future-proof” the company and “reinvest in the business,” particularly into the music itself. Kyncl didn’t disclose how many employees would be let go but wrote that WMG is looking to cut about $170 million through headcount reduction. The remaining $130 million will be targeted through administrative and real estate expenses, per the memo. Kyncl wrote that many of the changes would happen within the next three months, and the rest in the 2026 fiscal year.

“I know that this news is tough and unsettling, and you will have many questions,” Kyncl wrote. “The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. You’ll be hearing from your local leaders as soon as possible about your area of the company and your role within it. We’re communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and we’re committed to acting with empathy and integrity.”

Warner has underwent significant changes in the past several years, including several rounds of layoffs. The most notable change, however, was Elliot Grainge taking over as CEO of Warner’s Atlantic Music Group last year, replacing longtime Atlantic executive Julie Greenwald. WMG CEO of recorded music Max Lousada, along with 300 Entertainment co-founder Kevin Liles, stepped down from their posts as well.

News of the cost-saving measures comes hours after WMG had disclosed a new $1.2 billion joint venture with Bain Capital to acquire recorded and publishing catalogs. In Kyncl’s memo, he highlighted both M&A and A&R as areas of particular focus for WMG’s growth plan. WMG had posted an underwhelming quarterly earnings report back in May, but the company has also found recent success with upcoming artists like Atlantic’s Alex Warren — whose “Ordinary” has topped the Hot 100 for four of the past five weeks — and Warner Records’ Sombr, who has the No. 2 song on Spotify’s Global 50 chart.

“Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025,” Kyncl wrote. “These wins are powered by our ability to become simultaneously more effective and more efficient … allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities.”

Read Kyncl’s full memo below:

Hi everyone, 

Two years ago, we began to transform our company; not just to tinker around the edges of an old model, but to build a fast, innovative, and collaborative organization that reflects how music moves in the new world. 

Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025. These aren’t just the biggest hits in the world today; they’re our evergreen catalog of the future. At the same time, we’re starting to see better progress in our global recorded music market share, while hitting new highs in music publishing. These wins are powered by our ability to become simultaneously more effective and more efficient… allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities. 

Building on this success requires us to keep evolving. Today we’re announcing the remaining steps in our plan to help future-proof the company and unlock the next era of growth. Specifically, we’ll be reducing our annual costs by ~$300 million as we reinvest in the business: ~$170 million through headcount rightsizing for agility and impact, and ~$130 million in administrative and real estate expenses. Many changes will be implemented in the next three months, with the remainder in fiscal 2026.

I know that this news is tough and unsettling, and you will have many questions. The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. You’ll be hearing from your local leaders as soon as possible about your area of the company and your role within it. We’re communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and we’re committed to acting with empathy and integrity.

As we evolve, we’ll be focused on these core drivers of our success:

We’re putting more money behind the music… via a new growth plan.

We’re becoming a stronger, leaner company… for greater cut-through.

In an ever-changing industry, we must continue to supercharge our capabilities in long-term artist, songwriter, and catalog development. That’s why this company was created in the first place, it’s what we’ve always been best at, and it’s how we’ll differentiate ourselves in the future.

As we implement these changes, we promise to communicate with you regularly. Thank you for your patience and support for one another. We’ve got some remarkable music coming, and I know that whatever challenges we’re navigating, your commitment to our artists and songwriters is unwavering. 

Thank you,

Robert