Warner Music Announces Major Global Restructuring
Warner Music has announced a major restructuring project, just hours after revealing a $1.2 billion joint venture with Bain Capital to invest in music catalogues.
As per Variety, the company confirmed it’s in the final stage of a months-long restructuring, which will lead to the loss of an unspecified number of jobs that will number in the hundreds and total $US170 million ($258 million) “through headcount rightsizing for agility and impact”.
The downsizing is part of a mission to reduce annual costs by US$300 million.
In a bid to significantly invest in music, including A&R and M&A (such as the Bain deal), Warner Music is cutting costs in other areas, including staff, administrative, and real estate expenses.
The company has previously undergone several waves of layoffs over the past several years, with this next round expected to continue into 2026.
Variety published CEO Robert Kyncl’s lengthy memo to staff, which begins:
“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 organisation 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.”
Kyncl’s memo continues by outlining Warner Music’s new growth plan, which includes targeting A&R, M&A, and “becoming a stronger, leaning company.”
“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,” the memo concludes.