Atlantic Music Group
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Atlantic Records announced more staff layoffs on Thursday (Sept. 19) as the process of remaking the company continues.
“I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra,” CEO Robert Kyncl said in a staff memo obtained by Billboard. “In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years.”
These cuts follow the announcement in August of a significant executive restructuring: 10K Projects founder Elliot Grainge will take over as CEO of Atlantic Music Group, starting October 1. As part of his promotion, 10K will move under the Atlantic Music Group umbrella — joining Atlantic Records, Elektra and 300 — while veteran executive and longtime Atlantic leader Julie Greenwald will be heading for the exit. Kyncl’s memo promised that the company will “be unveiling a new dynamic structure for the label group” next week.
The memo did not say how many Atlantic employees were being let go. Sources expect the layoffs to be significant and to affect multiple departments.
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Kyncl has been busy retooling WMG since he took over at the start of 2023. That metamorphosis has come hand in hand with layoffs; Atlantic’s latest cuts are the fourth round in the extended Warner Music Group family in roughly 18 months.
The company laid off 4% of staff, or about 270 people, including several at Atlantic, in March 2023. “To take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve,” Kyncl wrote in a memo to staff at the time. In February of this year, WMG laid out plans to cut another 10% of staff, primarily from the company’s media properties — like Uproxx and HipHopDX, which it acquired in August 2018 — as well some in corporate and support roles.
The same month, Atlantic initiated an additional round of layoffs, albeit much smaller in scope, cutting roughly two dozen employees in the radio and video departments. “As hard as it is to say goodbye to our friends and valued colleagues, it is critical that we keep retooling the company and add new resources and skill sets to our business units,” Greenwald wrote in an email at the time.
Greenwald is now on her way out. So is WMG CEO of Recorded Music Max Lousada; his role is not being replaced. Similarly, 300 Entertainment co-founder and current chairman/CEO of 300 Elektra Entertainment Kevin Liles is also exiting the company without replacement. Other executives are also expected to depart as part of this restructuring, sources say.
This is just part of the change sweeping the company as Kyncl seeks a “flatter structure.” Warner Records will now also oversee Warner Music Nashville moving forward, and the heads of global catalog, marketing, ADA (distribution) and WMX (the fan and merch division) will all report directly to Kyncl.
All three major label groups have gone through changes this year. In February, the Universal Music Group reorganized its label divisions into a loose East Coast-West Coast structure, aligning Republic, Island, Def Jam and Mercury under Republic Recording Company chairman/CEO Monte Lipman and Interscope, Geffen and Capitol under Interscope Capitol Labels Group chairman/CEO John Janick, moves that came with some significant layoffs. Sony Music also underwent layoffs this year, though not to the same extent as the other two companies, sources have said.
Read Kyncl’s full memo below:
Hi everyone,
Since we announced Julie would be stepping down, we’ve been thoughtfully working on how to evolve Atlantic Music Group for the future. Next week, we will be unveiling a new dynamic structure for the label group. Elliot begins as CEO of AMG on October 1.
As part of this reorganization, we will unfortunately be saying goodbye to talented people. I know you have been waiting to hear the plan, and rather than carry out changes piecemeal, we decided to make these difficult choices in one go.
Today will be a tough day, and by 9pm ET you will have heard if your job is affected. Your leaders and the People team will provide you with all the important details. We are committed to helping those impacted through this with the utmost respect, and supporting them with a runway during the transition.
I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra. In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years. We wish you the very best and know that you will continue to do great things in your next chapters.
WMG is transforming swiftly this year, in a fast-paced, fiercely competitive industry. As always, delivering outstanding results for artists and songwriters is our highest priority in all our choices.
As I mentioned, you will hear more about our plan for AMG next week, with Elliot making an announcement about the leadership team. In the meantime, we have so much incredible music in the market, and some outstanding projects on the way. Your continued support of teammates is amazing, and your run-through-walls focus on the music is extraordinary.
Thank you and take care,
Robert
08/19/2024
Tracing the rapid ascent of the 30-year-old record executive (and son of UMG’s Lucian Grainge), from his early entrepreneurial ventures to his industry-shaking new role.
08/19/2024
For most of the last decade, three labels have dominated the U.S. recorded music business: Universal Music Group’s Republic and Interscope, and Warner Music Group’s Atlantic. So on Aug. 1, when Warner announced that as part of a management shakeup it had appointed Elliot Grainge as CEO of Atlantic Music Group, the move came as a surprise. Co-chairmen Julie Greenwald and Craig Kallman had led Atlantic for two decades, through the hardest years of the music business, to become two of the most respected executives in the industry. Now, after two years of declining market share, leadership will pass to a 30-year-old executive who comes from outside the major label system.
Within a week, Greenwald, who had been elevated to chairman of Atlantic Music Group, announced that she plans to leave at the end of January. (Kallman, one of the all-time A&R greats, will stay on as CEO of Atlantic Records, under Grainge.) And the entire business seems to be wondering, What does this mean? It’s a big gamble for WMG CEO Robert Kyncl. Grainge, the son of UMG chairman/CEO Lucian Grainge, has an impressive track record of success on a smaller scale, but not much on the kind of scale major labels usually operate. What’s going on?
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The obvious answer is that this is the acceleration of a youthquake in the music business. Streaming payouts are determined disproportionately by younger listeners who spend more time online. The industry’s top executives aren’t getting any younger, and the music business has never been much for succession planning.
One industry executive I spoke with asked sarcastically if I thought Grainge was familiar with Ruth Brown, the R&B icon who had so many hits in the 1950s that Atlantic was nicknamed “the house that Ruth built,” in a nod to Yankee Stadium. I have no idea, but I also know that most young listeners don’t, so, as much as it pains me to say this, maybe that doesn’t matter so much. Greenwald is now regarded as an industry leader, but she wasn’t so much older than Grainge is now when she became president of Island Records in 2002.
Grainge does seem to have a skill for identifying artists who are building an audience online and putting resources behind them in a smart way. Is his 10K Projects, which became part of WMG last year, a model for the label of the future? He hasn’t built the careers of any household-name superstars, which has been the traditional strength of the majors, though some of the acts he signed, like Ice Spice, are still on the rise.
As recently as two years ago, the trend lines seemed clear: Hip-hop was conquering the world, not only growing but also shaping emergent genres from Latin urbano to Afrobeats. Now it’s a bit harder to make sense of what’s working. Pop is getting bigger, but so is country. Latin is growing faster than ever, but tastes are changing there, too. And fans are more fickle than ever. Katy Perry’s comeback is faltering. The new album from Dua Lipa, which seemed like a sure thing, has had a slow start. Are listeners just hungry for new artists? Maybe. But Sabrina Carpenter released her first album before Dua did. Only Taylor Swift endures. As for everyone else, all we are is dust in the wind.
Amid this uncertainty, it’s tempting to think that someone must have the answers — especially if that person is young. Sure, the feeling goes, I don’t understand what’s happening, but I bet that guy does. And maybe he does! Grainge built a successful company by focusing on finding, developing and marketing talent in the digital world. The major labels have generally made bigger bets that paid off, or didn’t, in a bigger way. That’s harder to do now — there are fewer real superstars partly because there are fewer real paths to superstardom.
It may be more important than ever, though. Hit albums remain popular longer than ever, boosting the success of previous music by the same artist. Of the top 10 albums of the first half of 2024, Morgan Wallen had two of them, one each from 2021 and 2023; Zach Bryan’s 2023 album was the 8th biggest of the first half of 2024, so he could well have two of the biggest releases this year. (That top 10 list for the first half of 2024 has only seven artists.)
That’s the kind of success Grainge needs to bring to Atlantic, whether it comes from new acts or old ones, big bets or small ones the label doubles down on, or some combination of the two. All of the questions this raises about the future of the music business — What does this mean? What’s going on? — will be answered, at least to some extent, by how he does at that.
The power of the major label has been completely decimated.”
That broadside came from Elliot Grainge during an interview with The Los Angeles Times last year. In the profile, Grainge, founder of the independent label 10K Projects and son of Universal Music Group chairman/CEO Lucian Grainge, added that the majors were like “a conveyor belt with 100 other priorities” and “mediocre-at-best product-management departments.” In his view, there was “not one example” of an artist “signed, developed and marketed from scratch to huge fanfare by a major label in the last three years.”
Sixteen months later, one of those conveyor belts will soon belong to Grainge. In a sudden and surprising shakeup, Warner Music Group announced that the 30-year-old will take over as CEO of Atlantic Music Group on Oct. 1, less than a year after WMG entered a joint venture with 10K. In his new position, Grainge will oversee the renowned Atlantic Records, as well as 300 Elektra Entertainment and his own imprint.
This means he will jump from managing a staff of around 30 in 2023, according to The L.A. Times, to commanding hundreds of employees. And as part of the overhaul, at least two well-regarded WMG veterans are headed for the exits: Max Lousada, who served as the company’s CEO of Recorded Music since 2017; and Julie Greenwald, who had led Atlantic as chairman and COO since 2006.
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The upheaval marks an abrupt generational shift for Atlantic, the storied label co-founded by music legend Ahmet Ertegun in 1947. “They’re going from the most traditional, A&R-driven leadership to a very contemporary, digitally-native new administration,” says one executive who has worked with Grainge in the past. “It’s going to be interesting to see what happens.”
“Cutting Away the Bullshit”
Grainge has risen rapidly in a remarkably short time in the business, and several executives who have worked with him cheered his latest promotion. “We’re still operating in an antiquated system, and Elliot’s found his success by cutting away the bullshit,” says Solomon Sobande, who managed XXXTentacion, the SoundCloud rapper-turned-streaming superstar, before his death and teamed up with Grainge to release X’s ? album in 2018. “There’s a certain level of commitment to his artists, making sure they had everything they needed to be successful, that I was always enthralled by.”
Some Warner employees, however, said they were upset at the departures precipitated by Grainge’s promotion. For them, losing Greenwald, who has been at Atlantic for two decades and assured Ertegun she would take care of the company upon being named president back in 2004, symbolizes the end of an era. (Craig Kallman, who served as chairman/CEO of Atlantic alongside Greenwald for many years and focused on A&R, will remain as CEO of Atlantic Records, albeit in a diminished role.) “We did not think Julie’s run was up yet, and we did not think Max’s run was up yet,” says one WMG executive who spoke on the condition of anonymity because they were not authorized to speak publicly.
Both Lousada and Greenwald were known for their close connections to marquee artists on WMG’s rosters; filling the void left by their departures will be no mean feat. Each has spent decades at record labels, developing reputations for their relationships with both artists and staff. Several executives expressed surprise that the new Atlantic boss is relatively inexperienced — even at a time when younger CEOs have taken over Columbia Records, Def Jam, Island Records and Warner Records, Grainge is the youngest major-label chief by a wide margin — rather than someone who has invested the years to learn how the majors operate.
Multiple WMG employees also wondered how 10K’s approach to signing and building artists will translate to Atlantic. While Grainge’s label has helped generate billions of streams, it has not yet nurtured an arena-headlining superstar in the mold of Atlantic’s Bruno Mars or Ed Sheeran, two artists whom Lousada and Greenwald helped shepherd to global success.
“Julie was widely regarded as one of the last real artist advocates who prioritized substantial songwriting over memetic share-ability,” says one manager who has worked closely with Atlantic. “She knows superstars transcend the algorithm. I really haven’t seen 10K develop anything that I think will last a generation or more.”
In addition, some employees said they are struggling to wrap their heads around the fact that the father of their incoming boss runs their biggest competitor. Together, father and son will lead companies that control more than a third of the U.S. recorded music market.
And some executives are worried that additional consolidation might mean more layoffs. Earlier this year, Atlantic laid off roughly two dozen staffers, mostly from radio and video; any new CEO at any company is likely to have new priorities. Grainge will do “some creative marketing that might not be ‘traditional’ for the majors,” predicts a second executive who has worked with him.
“Some labels still send shit to radio as their primary marketing strategy,” adds a third source who knows Grainge. “10K hasn’t done that. They invest heavily in digital — their ways of working with artists are much more modern.”
A rep for WMG declined to comment. On a recent earnings call, WMG CEO Robert Kyncl said he was “excited by the prospect of taking Atlantic’s culture-making capabilities” and “adding Elliot’s digitally native approach into the mix.” That combination, he continued, will “grow the label’s outstanding reputation.”
“Labels Are Trying to Adjust”
All the majors are facing an increasingly tough landscape because their influence over what music becomes popular is diminished — “decimated,” in Grainge’s words. As a result, “Labels are trying to adjust and test different methodologies to figure out what the future of a major will look like,” says a fourth executive who has worked with Grainge in the past.
In the last year, outside of the superstar ecosystems, music industry wins have often come from smaller, more agile outfits like Pulse Records (Tommy Richman) or Artist Partner Group (Odetari, Lay Bankz). 10K’s biggest success since moving to Warner has been Artemas’ “I Like the Way You Kiss Me” — low-slung club-pop — which peaked at No. 12 on the Hot 100, and, to a lesser extent, Rich Amiri‘s “One Call” (No. 60).
These artists typically thrive in niches online, and don’t necessarily release the type of blockbuster albums that linger near the top of the Billboard 200 for weeks on end. But many young executives believe that this “riches in the niches” approach is the future — they argue that hardly any new superstars will be created now that audiences are spread across dozens of online platforms and mass media has lost much of its firepower.
Grainge’s rise, then, is a nod to the success of these streamlined, quick-on-the-draw operations, with their lower overheads and digital expertise. “It says something about the state of the industry as a whole that one big label system made a bet on a more independent, lean music business strategy,” says the first executive who has worked with Grainge.
But there’s no guarantee that the two systems will mesh. “There’s a political element to going into a place like Atlantic which is very different from running an independent company,” the executive continues. “It’s a challenge to be in that position and inherit decades worth of custom and chains of command.”
Elliot Grainge
Logan Mock
“The Red Tape Doesn’t Exist”
Grainge founded 10K Projects in 2016 and connected with many of his biggest acts early on — often rappers with avid online followings. Grainge was quick to dive into the volatile, punk- and emo-inflected hip-hop that erupted on SoundCloud in this era, signing Trippie Redd, 6ix9ine and XXXTentacion, among others. (More recently, 10K signed Ice Spice in partnership with Capitol Music Group; while most artists moved to WMG with 10K in the joint venture last September, Ice Spice remained under 10K/Capitol.)
At the time, the major labels hadn’t yet built the tools they now use to scour the internet’s nooks and crannies looking for viral phenomena, which left an opportunity for executives immersed in these digital scenes to find talent. The majors may also have been wary of the media controversies and legal troubles that dogged artists like 6ix9ine and XXXTentacion. (At the time, Universal Music Group distributed 10K.) Grainge has “never been afraid to jump out the window for something he believed in,” Sobande says.
“The first time I spoke to Elliot, I was really shocked — everybody knows who his dad was, so I was expecting a spoiled rich kid,” Sobande continues. Instead, he found Grainge “was down to get in the trenches. He was with us flying out to Florida, picking singles, coming in the studio, actually doing the work.”
10K developed a reputation for finding online phenomena early and marketing them savvily, especially on youth-friendly platforms like TikTok — an approach that has now been widely adopted by labels. “The guys at 10K are quick and nimble as it relates to digital strategy and taking risks,” says Karl Fowlkes, an entertainment attorney who has signed several clients to the label. “That’s what makes them special. The red tape doesn’t exist.”
Grainge’s “word was as good as a contract,” the first executive who worked with him agrees. “If you spoke to the guy and he agreed to do something, it would get done without having to jump through a million hoops.”
10K was also known for offering flexible — and generous — short-term deals to artists with momentum, and getting those agreements done speedily. (In contrast, multiple lawyers say Atlantic favored much more traditional deals until relatively recently.) XXXTentacion was initially signed to EMPIRE, but “they could only do so much at the time — it wasn’t the huge company it is now,” Sobande says. “Elliot wanted to get in the X business. And I remember calling him one day, like, ‘Listen, I’ve got an opportunity for you to get involved.’”
Grainge’s response: “Tell me how much, and I’ll do it.”
In the music business, financial commitments often come with strings attached, but multiple sources who know Grainge say he is uninterested in meddling in artists’ processes. He’s very much “this is their idea, let’s go with it,” says the third executive who has collaborated with Atlantic’s incoming CEO.
Birdman Zoe manages the producer Taz Taylor, whose Internet Money record label signed a joint venture with 10K in 2019. “We had a lot of label meetings early on,” Birdman Zoe says. “We really liked the fact that Elliot told us, ‘I want to let you guys do your thing. I’m not here to give you my opinion on something I might not know about. I’m going to back you and financially support you.’”
“You’ve Got to Be Able to Move Quickly”
Independent operations like AWAL, 300 and Alamo have all been snapped up, wholly or partially, by major labels in recent years, part of the majors’ never-ending struggle for market share. 10K was also a target: In September 2023, the company ended its longtime association with UMG and announced a joint venture with Warner Music Group. As part of the move, 10K became a standalone frontline label at WMG and Grainge joined the company’s leadership team.
Forging this partnership was one of the first big moves by Kyncl, who held roles at YouTube and Netflix before taking over WMG in January 2023. (His background in tech has been a point of contention with staff — multiple executives worry that he and the former tech employees he has hired understand data but not culture.) Kyncl inherited a challenge: Halfway through 2024, Republic Records’ current market share was greater than all of Warner Music Group’s. Without big releases from marquee stars, Atlantic in particular has slipped; it’s now behind sister label Warner Records in current market share so far in 2024.
Grainge will be partially responsible for reversing that decline. Sobande is confident he can pull it off. “To be successful, you’ve got to be able to move quickly, and a lot of times the corporate structure slows that process down,” Sobande acknowledges. But if anybody can figure out a way to navigate that tension, “it’s going to be Elliot.”
Julie Greenwald will step down from her role as co-chair/COO of Atlantic Records and chairman/CEO of Atlantic Music Group, she announced during a company town hall on Tuesday (Aug. 6). She will be succeeded in her role as chairman/CEO of Atlantic Music Group by 10K Projects CEO/founder Elliot Grainge, effective Oct. 1.
The Zoom call was roughly 10-15 minutes long, according to sources at the label. Greenwald’s announcement of her departure was said by staffers who spoke with Billboard to be both “classy,” “inspiring” and “empowering,” with the longtime executive focusing on the success she has seen at Atlantic over the last two decades and clarifying that she will officially exit at the end of January 2025.
Tuesday’s announcement comes just five days after it was reported that Warner Music Group would be undergoing a major executive restructuring that would see CEO of recorded music Max Lousada stepping down at the end of September, Grainge ascending to the role of CEO of Atlantic Music Group effective Oct. 1 and Greenwald transitioning to the role of chairman of Atlantic Music Group, a move described in a press release as a “leadership transition.” The changes are thought to be far-reaching and indicative of a generational shift at Warner Music Group, which has been helmed by CEO Robert Kyncl since Jan. 1, 2023.
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One of the most celebrated executives in the music business, Greenwald has spent the last 20 years of her career at Atlantic and become practically synonymous with the storied label. During her time at the helm of Atlantic Music Group, she shepherded the careers of artists such as Bruno Mars, Ed Sheeran, Cardi B, Twenty One Pilots, Brandi Carlile, Charli XCX, Lil Uzi Vert and dozens more. She was named Billboard’s Women in Music executive of the year in 2017.
Greenwald led Atlantic alongside Craig Kallman, co-chair/CEO of Atlantic Records and the A&R brain behind the operation. Kallman will continue to hold the title of CEO of Atlantic Records.
At the time of the restructuring announcement, Greenwald said in a statement: “My whole career is about developing baby bands into career artists and empowering our amazing people to change culture in unexpected ways. It’s been 20 years since I walked through the door at Atlantic and began the work of rearchitecting this iconic label. I couldn’t have done it without the deep passion and dedication of my incredible team, and our unbelievable artists, who make music that inspires and moves people everywhere. Finally, I want to welcome Elliot; I’m looking forward to working with him as we continue to place our artists and their music at the heart of this company.”
Additional reporting by Melinda Newman.
In the wake of his major move to the new title of Atlantic Music Group CEO, 10K Projects founder/CEO Elliot Grainge sent a note to the staff of the label that he founded, which was obtained by Billboard, saying that “we don’t expect any changes to take place at 10K” and that the shift represents “business as usual.”
Earlier today (Aug. 1), the Warner Music Group announced a major executive shakeup, which will see CEO of Recorded Music Max Lousada exit the company at the end of September and Grainge move into the CEO role of Atlantic Music Group, with longtime leaders Julie Greenwald moving to chairman and Craig Kallman remaining CEO of Atlantic Records. As part of the shift, 10K — which had operated as a standalone label since Grainge brought it to WMG last September — will become part of Atlantic Music Group, alongside 300 Elektra Entertainment.
“This new structure will give the 10K team and artists more visibility, more global exposure, and bigger opportunities across the Atlantic and WMG network,” Grainge wrote, adding that he’d continue to work alongside 10K co-presidents Zach Friedman and Tony Talamo “to create opportunities for our amazing roster of artists.”
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Grainge, the son of Universal Music Group chairman/CEO Lucian Grainge, founded 10K as an independent company in 2016, and saw success with artists such as XXXTentacion, Trippie Red, Ice Spice and Surfaces, among a slew of others. Originally affiliated with the Capitol Music Group, 10K moved to Warner in September, and Grainge joined WMG’s global leadership team. He’ll now helm one of the most historic and decorated label groups in recorded music history.
Read Grainge’s full letter below.
Dear 10K Family,
This good news is confidential until the official announcement which will be issued shortly, but I wanted all of you to hear it from me first. I wanted to let you know that I have accepted the extraordinary opportunity to become CEO of Atlantic Music Group. As part of this change, in the coming weeks, 10K will officially join Atlantic Music Group, alongside Atlantic Records and 300 Elektra Entertainment. I am so happy that this new role allows me to continue to be able to work with Zach, Tony and all of you to create opportunities for our amazing roster of artists. This new structure will give the 10K team and artists more visibility, more global exposure, and bigger opportunities across the Atlantic and WMG network. We don’t expect any changes to take place at 10K. It’s business as usual moving forward, so I’m counting on your focus and dedication more than ever. Thank you from the bottom of my heart for all that you have done to make 10K Projects the incredible place it is today and for the future. I’m looking forward to our next chapter together.
Sincerely, Elliot
The Warner Music Group is undergoing a major executive restructuring that will see CEO of Recorded Music Max Lousada step down at the end of September, the company announced today (Aug. 1). Lousada, who has run the recorded music operation of the major label for eight years, will remain an advisor until January 31, the company said; Lousada’s role will cease to exist moving forward, as will the role of president of international.
As part of the transition, longtime co-leader of Atlantic Records and Atlantic Music Group chairman/CEO Julie Greenwald will now take on the role of chairman of Atlantic Music Group, reporting directly to WMG CEO Robert Kyncl. Meanwhile, 10k Projects founder Eliot Grainge will ascend to the role of CEO of Atlantic Music Group effective October 1, also reporting to Kyncl.
The change will see 10K shift under the Atlantic Music Group umbrella, alongside Atlantic Records, Elektra and 300. Meanwhile, Warner Records — led by co-chair/CEO Aaron Bay-Schuck and co-chairCOO Tom Corson — will oversee Warner Music Nashville, in addition to Nonesuch and Reprise.
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“On behalf of everyone at WMG, I’d like to thank Max for his extraordinary achievements over the last 20 years,” Kyncl said in a statement. “Max is a true artists’ champion, who created a culture that puts artistry first, growing our global reach and building a roster of incredible talent and an outstanding team. I’m grateful that he’ll be helping to ensure a smooth transition.”
“Over the past two decades, we created something special together at Warner: a music company built for artists, where original voices are championed, where their creativity is honored and protected, and where superstar careers are ignited,” Lousada said in a statement. “I’m proud to have grown a world-class team who share that vision and whose enterprise and energy have brought in new labels, rebuilt iconic brands, expanded our global network, and pioneered new fan experiences. The music business has always been about evolution, and the time has come for me to build something new. I’ll be helping the team through this transition, and I have no doubt they’ll continue to develop artists who move the world.”
This is a developing story.
Atlantic Music Group chairman/CEO Julie Greenwald announced layoffs of about two dozen people Monday (Feb. 26), primarily in the radio and video departments, in an internal memo to staff obtained by Billboard. As part of the announcement, Greenwald also said the company would be “bringing on new and additional skill sets in social media, content creation, community building and audience insights,” with the goal of “dial[ing] up our fan focus and help[ing] artists tell their stories in ways that resonate.”
Greenwald, who has been at Atlantic Records for 20 years, was named chairman/CEO of the newly-formed Atlantic Music Group in October of 2022, with oversight of Atlantic Records and its subsidiaries (Atco, Big Beat, Canvasback) as well as 300 Elektra Entertainment, which includes 300, Elektra, Fueled By Ramen, Roadrunner, Low Country Sound, DTA and Public Consumption. In that role, she is still co-chair/COO of Atlantic Records alongside co-chair/CEO Craig Kallman.
“Our artists today need more support from us than ever — in a world that’s getting noisier, faster, and more fiercely competitive,” Greenwald wrote. “We have to do more, but at the same time, our approach has to be authentic, bold, and bespoke to individual artists. We can’t impact culture if we don’t have the right mix of people who live that culture. That’s why we need dedicated teams of multi-talented, ambidextrous people — our ‘SWAT teams’ — who encircle the artist and do everything possible to help achieve their full potential.”
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The news comes three weeks after Warner Music Group CEO Robert Kyncl announced that WMG would be cutting its staff by 10%, or some 600 employees, amid a broader reallocation of resources that will involve selling its owned and operated media properties, such as HipHopDX and Uproxx. That move came the same day that Warner announced it had had its best quarter ever, with revenue up 17% to $1.75 billion, and that the moves would be about freeing up some $200 million to reinvest in the company.
However, Greenwald made a point to write that this move was not about merging or shuttering labels, but about repositioning the label group for the future. “We’ve all heard the same industry rumors about labels being reduced or merged into one another. I can tell you: this is not that,” she wrote. “We’re deeply committed to the unique cultures across our labels, led by 300, Elektra and Atlantic. Craig, Kevin [Liles, CEO of 300 Elektra], and I passionately believe these identities are crucial to attracting great artists and building great careers. We want artists to be choiceful about the culture and team they belong with, just as we’re thoughtful about deciding which artists we’re signing.”
Read Greenwald’s full note to staff below.
Dear Atlantic, Elektra and 300,
Two weeks ago, during the all hands call you heard Robert and Max talk about the evolution of our music company. They tasked us last year to examine our staffing and ask the tough question, how do we achieve maximum impact for our artists in this ever changing landscape?
As hard as it is to say goodbye to our friends and valued colleagues, it is critical that we keep retooling the company and add new resources and skill sets to our business units. I have now been at Atlantic for 20 years. The company has grown and evolved tremendously, because we have not been afraid to implement change and add new marketers, new A & R, new data and research and even new labels. Always evolving but with a consistent North Star : sign the best musicians and commit to the hardest work of building real careers through true artist development.
Our artists today need more support from us than ever – in a world that’s getting noisier, faster, and more fiercely competitive. We have to do more, but at the same time, our approach has to be authentic, bold, and bespoke to individual artists. We can’t impact culture if we don’t have the right mix of people who live that culture. That’s why we need dedicated teams of multi-talented, ambidextrous people – our ‘SWAT teams’ – who encircle the artist and do everything possible to help achieve their full potential.
The changes we’re making today are primarily happening in our radio and video teams. We’ll preserve our industry-leading position in those areas, while bringing on new and additional skill sets in social media, content creation, community building and audience insights. This will allow us to dial up our fan focus and help artists tell their stories in ways that resonate.
As part of this shift, I’m sorry to say about two dozen people will be leaving us from across our three labels and their imprints. We’ve already informed everyone who is impacted. I know we will all support each other, even more than usual, and I deeply appreciate your empathy and understanding.
We’ve all heard the same industry rumors about labels being reduced or merged into one another. I can tell you: this is not that. We’re deeply committed to the unique cultures across our labels, led by 300, Elektra and Atlantic. Craig, Kevin, and I passionately believe these identities are crucial to attracting great artists and building great careers. We want artists to be choiceful about the culture and team they belong with, just as we’re thoughtful about deciding which artists we’re signing.
Right now, there’s incredible music coming through from artists across the entire group. We have some of our biggest superstars returning, and some extraordinary new artists we’re building in a very real way. We’re taking the right step into the future, and I hope you’ll continue to share your ideas with senior management so we can continually improve.
Thank you.
Julie