Warner Music Group (WMG) announced a restructuring plan on Tuesday, to cut annual costs by $300 million, with $170 million achieved through layoffs and $130 million from reductions in administrative and real estate expenses.
The layoffs, impacting an unspecified number of employees, are part of a broader strategy to "future-proof" the company and reinvest savings into music, artist development, and acquisitions.
The plan includes a $1.2 billion joint venture with Bain Capital to acquire music catalogs, such as a potential deal for the Red Hot Chili Peppers’ catalog valued at over $300 million. Most changes will be implemented within three months, with some extending into fiscal 2026. This follows previous layoffs, including 600 jobs cut in February 2024 (10% of the workforce) and 270 in March 2023 (4% of staff), aimed at saving $200 million and $260 million, respectively.
WMG’s market share has improved, reaching 16.38% in 2025 from 15.68% in mid-2024, with artists like Alex Warren and Lady Gaga topping charts. Kyncl highlighted these gains as evidence of the company’s strategy gaining momentum.
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