Warner Music expects to lay off more employees than it originally forecast as part of a restructuring plan aimed at boosting its core recorded-music business.
The entertainment and record-label conglomerate said Thursday that it would reduce its workforce by about 750 employees, representing 13% of its total headcount. The company had previously said it would lay off 600 employees, or 10% of its workforce.
Warner Music first disclosed its cost-cutting measures in February. Universal Music followed with its own restructuring plan, which is expected to deliver 250 million euros, equivalent to $279 million, in annual savings by 2026.
The restructuring plan is designed to free up more funds to invest in music and accelerate growth for the next decade, Warner Music said in a Securities and Exchange Commission filing.
Warner Music added that it now expects to book pretax restructuring charges of $210 million, up from an original estimate of $140 million.
The company’s updated cost-cutting measures come about a month after it reported a slight decline in quarterly revenue after its recorded-music business took a hit from a terminated distribution agreement with BMG.
In August, the company made two organizational changes at Atlantic Music Group and other regional hubs to restructure its recorded-music business and drive revenue growth.
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