Warner Music (NASDAQ:WMG) layoffs have the entertainment company cutting 4% of its workforce during economic uncertainty.
These layoffs were announced by company CEO Robert Kyncl in a letter sent to employees. That letter has been shared with several media outlets and confirms that the Warner Music layoffs will include some 270 workers.
Here’s a portion of the memo, per Variety:
“We’ve made the tough decision to reduce our global team by approximately 270 people, or about 4%. At the same time, we’re reallocating resources towards new skills for artist and songwriter development and new tech initiatives. We’re also reducing discretionary spending and open positions to provide us with additional flexibility for our future.”
Investors will note that Kyncl recently took over as the new CEO of Warner Music earlier this year. Other new leadership changes include Isabel Garvey joining as the Chief Operating Officer of Warner Music U.K. and Jennifer Ivory as Managing Director of the Parlophone record label. These two leadership changes were announced yesterday.
Warner Music Joins Layoffs Trend
Ongoing layoffs have been a consistent trend lately with many companies reducing their headcounts. That comes alongside increasing inflation, rising interest rates and reduced consumer spending. While the tech sector is getting hit the hardest, the effects are still being felt across the entire market.
WMG stock is down 1.4% as of Thursday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
