Warner Music’s Global Restructuring: ‘No Immediate Impact’ to ANZ Team
Warner Music Group’s latest round of layoffs won’t immediately impact the domestic company, a spokesperson tells The Music Network.
As previously reported, the music major is said to be entering the final stage in its grand restructuring, a years-long project to “future-proof” the company by cutting costs, shedding staff and reinvesting in A&R and catalogue.
WMG hopes to realise US$300 million ($456 million) in annual savings, with unspecified number of staff cuts accounting for US$170 million of those planned reductions, and the remainder through administrative and real estate expenses.
“There is no immediate impact to the team in Australia and New Zealand,” reads a WMG statement, issued to TMN. “We remain committed to our mission to make our global artists local and our local artists global.”
The axe first swung in early 2024, part of a mission to achieve US$200 million in cost savings by the end of September 2025.
In a memo to staff from WMG’s CEO Robert Kyncl, published in full by Variety, these new changes will be implemented in the next three months, with the rest in fiscal 2026.
“Two years ago,” he begins the message, “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.”
These remaining steps in WMG’s strategy will help “unlock the next era of growth,” and were revealed soon after the announcement of a joint venture with Bain Capital, formed with the goal to acquire up to US$1.2 billion in catalogs across both recorded music and music publishing.
On the staff cuts, Kyncl admits: “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.”
Dan Rosen and Warner Music Australasia have momentum on their side. Led by Alex Warren’s multi-platinum hit “Ordinary” (via Atlantic/Warner), the Warner Music roster accounted for the entire top 5 on the ARIA tally published Friday, June 6th. The next week, for the chart published Friday, June 13th, the music major nailed seven of the top 10, including an “Ordinary” No. 1, with 10 of the top 20 singles.
It’s a Warner Music double this week, as Warren’s “Ordinary” holds at No. 1 for the 14th consecutive week on the ARIA Singles Chart, published Friday, June 27th, while Benson Boone’s American Heart opens in the top spot on the albums survey.