layoffs
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Audacy has reduced its workforce by 2%, according to a company spokesperson. Affected employees included a Boston sports reporter who was laid off the day before today’s NFL Draft, a Chicago afternoon news anchor and roughly 98 other employees, according to reports. “It’s like, ‘How many layoffs can they go through before there’s nobody left?’” […]
The dispute over the YouTube Music union, whose 43 members were abruptly laid off last week while one was testifying during an Austin City Council meeting, largely depends on the definition of “contractor.” Because they are not permanent, full-time employees, “their project on YouTube Music has ended,” according to a rep from their employer, information-technology subcontractor Cognizant, and “the contract expired at its natural end date.”
Independent contractors, according to Kate Bronfenbrenner, Cornell University’s director of labor education research, are “not under the regulatory state,” so they lack basic workplace protections. “Whether it’s labor law, health and safety or race discrimination, independent contractors have almost no rights in our economy,” she says. “So employers say, ‘We want to make as much money as possible — let’s make all our employees temporary employees.’”
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The 43 YouTube contractors, who work for Cognizant and Google to oversee content for the music-streaming service’s 80 million subscribers, voted unanimously almost a year ago to form a union under the auspices of Alphabet Workers Union-CWA. They’ve complained of hourly wages as low as $19 and a lack of sick pay and benefits. And they say Google has not been willing to bargain with them; in January, the National Labor Relations Board ruled that Google’s refusal to do so was illegal and must “bargain on request.” (An appeal is pending.)
In a statement, Google spokeswoman Courtenay Mencini repeated that Cognizant, not Google, is “responsible for these workers’ employment terms.” On Cognizant’s side, Jeff DeMarrais, chief communications officer, says “nobody was laid off” from YouTube Music and the contractors have seven weeks of paid time to “explore other roles within the organization.”
Sam Regan, a YouTube Music data analyst who is on the union’s organizing committee, responds that his team’s project was “never considered as temporary” and the Cognizant moves are, in fact, layoffs, as opposed to reassignments to different areas of the company. “Our team was fired and we had no notice, no warning, that we were going to get laid off,” he says. “It was cold, ruthless, dehumanizing, inhumane. The practice of tech companies laying off large swaths of people without notice is indicative of a pretty sick orientation towards workers in our culture.”
Regan and Katie-Marie Marschner, a subject matter expert on YouTube Music’s charts team until last week, accuse company managers of forcing them to leave their office without giving them a chance to remove their belongings. The office was a “total destruction zone,” Marschner says, alleging company employees and on-site security refused to let them remove certain personal items. “The experience was traumatic for a lot of us,” Regan adds.
Members of the YouTube Music team had been scheduled to testify before the Austin City Council on Feb. 29 to ask city officials to help convince Google to negotiate with their union. But as data analyst Jack Benedict was speaking, Marschner received a text saying her entire team was fired. Shaken, she interrupted the colleague’s speech — a moment captured in a video clip that went viral. Watching the clip afterwards, Marschner says, has been surreal and traumatic. “It’s such an insane experience opening my phone and that’s the first thing I see — myself talking, and not just talking, but the sound of my voice and the pain and shock,” she says.
Marschner accuses Cognizant and Google of “union-busting” and says the team members were “fired illegally.” And Cornell’s Bronfenbrenner is skeptical of Cognizant’s assertion that the temporary employees had a “natural end date” of Feb. 29. “There are a whole lot of questions about that,” she says. “From everything I’ve read, there wasn’t a certain date. And if there was an uncertain date, the employer can’t say their contract just ended and they can’t be laid off.”
Reached at home, Marschner says she plans to continue pursuing union recognition for her team: “We’re not done with this. We’re very much ready to keep the fight going.”
Capitol Music Group co-president Arjun Pulijal has stepped down from his role after 11 years at the company, he announced in an internal memo obtained by Billboard.
The move comes amid a broader executive shakeup atop the company, as former CMG chair/CEO Michelle Jubelirer stepped down from her role on Feb. 6, with Geffen president Tom March coming in to replace her and UMPG veteran Lilia Parsa named co-president the following day.
Pulijal was named CMG president by Jubelirer in January 2022, shortly after she ascended to the top role. Prior to that, Pulijal had run the marketing department at Capitol Records; he initially joined Capitol in 2013 after a seven-year stint at Epic Records.
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“Today marks my 11 year anniversary at Capitol Music Group,” Pulijal wrote in the memo. “[Eleven] years of aspiring to help artists of all types in whatever way I could. [Eleven] years of a commitment to honor an iconic music company’s legacy and embrace disruption to modernize it in equal measure. [Eleven] years of working with incredible people and building relationships that transcend the word ‘colleague.’ … It is surreal and difficult to say goodbye to a company I’ve called home for over a decade. I’ve had the unique experience of growing my career at Capitol. From campaign builder to artist confidant to leader, I’ve seen this company through many lenses.”
Pulijal’s departure comes days after Capitol’s parent company Universal Music Group began the process of laying off dozens of people at Capitol and other labels as part of a broader restructuring of the company’s label divisions, which UMG chairman/CEO Lucian Grainge first announced Feb. 1 and which was confirmed Feb. 28. As part of that overhaul, Interscope Geffen A&M chairman/CEO John Janick received oversight of Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note, while Republic Records CEO Monte Lipman will oversee Republic, Def Jam, Island and Mercury.
“I feel for all of those people exiting the company this past week, many of whom didn’t have the luxury of choice like I did,” Pulijal wrote, nodding to the layoffs at Capitol. “Know that you and I are leaving on a high note. You were all a vital part of the success we had over the last few years in particular. We built a company based on a shared love of music, artistry, creativity, diversity, transparency, empathy, and efficiency in a complex and unforgiving marketplace… and we had historic success doing it. I will carry those values forward into the future, to wherever my journey goes from here. When I figure it out, you all will be the first to know.”
Read Pulijal’s full memo below.
Today marks my 11 year anniversary at Capitol Music Group.
11 years of aspiring to help artists of all types in whatever way I could.
11 years of a commitment to honor an iconic music company’s legacy and embrace disruption to modernize it in equal measure.
11 years of working with incredible people and building relationships that transcend the word ‘colleague’.
In a bittersweet & appropriately full-circle turn of events, today I am announcing that I have made the decision to leave my position as President of Capitol Music Group.
It is surreal and difficult to say goodbye to a company I’ve called home for over a decade. I’ve had the unique experience of growing my career at Capitol. From campaign builder to artist confidant to leader, I’ve seen this company through many lenses. We’ve always valued storytelling to help artists connect with audiences, so I of course couldn’t depart without telling a story:
When I assumed the position of President, I received many notes of congratulations from past Capitol employees that I’d never met, many of whom worked for the company decades ago and had long since departed. It was evident that this iconic company continues to hold such an important place in people’s lives and music history. One such note pointed out that I was named President exactly 50 years after the legendary late Bhaskar Menon held the same position. As a person of Indian descent and one of the (sadly) few AAPI leaders in music, knowing that someone with my same cultural background succeeded in this role was beyond inspiring. I read everything I could about his intrepid life and career, including speaking with colleagues and his family. While he achieved monumental success with artists and records, it was clear the most enduring part of his legacy was how he treated people. He embraced constructive confrontation, leading with honesty and grace. These were virtues I always aimed to honor.
It’s about people first.
When artists ask me why they need a label, I always say “it’s about the people.”
I feel for all of those people exiting the company this past week, many of whom didn’t have the luxury of choice like I did. Know that you and I are leaving on a high note. You were all a vital part of the success we had over the last few years in particular. We built a company based on a shared love of music, artistry, creativity, diversity, transparency, empathy, and efficiency in a complex and unforgiving marketplace….and we had historic success doing it. I will carry those values forward into the future, to wherever my journey goes from here. When I figure it out, you all will be the first to know.
I leave with an overwhelming sense of gratitude for the artists and staff, & wish the new leadership – John Janick, Steve Berman, Tom March, & Lillia Parsa – nothing but the best moving forward. I will be available to help in the background with transition over the coming weeks before officially departing later this month.
Thank You.
It’s been a nerve-wracking week for Universal Music Group employees — many did not know when they went to the office on Wednesday morning if they’d have a job on Friday. Layoffs hit department heads first and then started to impact the rank and file.
Over the past year, more than a dozen companies across the music business have undergone layoffs, eliminating thousands of jobs and leaving those who remain in a state of uncertainty. In the past twelve months alone, Warner Music Group, Atlantic Music Group, SiriusXM, Amazon Music, TikTok Music, CAA, Discord, BMG, TIDAL and Spotify have all cut staff.
This week, Universal Music Group followed suit, instituting layoffs in search of around $270 million in annual savings. The process started Wednesday and continued through Friday (March 1), impacting publicity departments, radio teams, A&R, marketing and more.
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The cuts are part of a restructure of UMG’s label operations that chairman/CEO Lucian Grainge announced in an internal memo on Feb. 1. The shift reorganized the company loosely into an East Coast-West Coast orientation, with Republic Records CEO Monte Lipman overseeing Republic, Def Jam, Island and Mercury, and Interscope Geffen A&M chairman/CEO John Janick responsible for Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note.
For UMG employees, the long runway leading into the layoffs — which were first hinted at back in October — combined with the fact that the company announced on Wednesday morning that it had earned more than $12 billion in revenue and $1.3 billion in net profit in 2023, has caused frustration, anger and anxiety, even for those who kept their jobs. That the layoffs came immediately following the annual earnings report, sources say, has led to greater frustration.
Though the scenes employees describe are typical for any company undergoing large-scale layoffs — the slow drip of news about who’s been let go, and colleagues crying as they pack up their desks, for example — UMG’s layoffs have had an outsized impact on industry morale because of the label’s position as the dominant market leader, its strong financial results and the extended period for which employees have known the cuts were coming.
In an email to staff, Grange said that “by reimagining our global structure, we are creating a blueprint for a future where our labels are empowered with new capabilities and additional agility, ensuring they can sign and support artists with enhanced access to UMG’s highest-performing internal teams and resources.” He added, “This organizational redesign represents a new paradigm for artist support and fan engagement.”
UMG first signaled its cuts during an earnings call with financial analysts at the end of October. “[We] are currently conducting a careful review of our cost base, which we will complete over the coming months, and we will update you when appropriate about an anticipated cost savings program to commence in 2024,” said Boyd Muir, the company’s executive vp and CFO. Grainge added that the company planned to “cut overheads in order to grow elsewhere.”
Earnings calls are, by nature, full of statistics and jargon like “adjusted EBITDA.” In January, the human cost of “cutting overhead” started to become clear: That would mean laying off hundreds of employees. In a statement at the time, UMG said “we are creating efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market, while realizing the benefits of our scale.”
The October earnings call did not make big headlines at the time. But many employees saw the January reports that layoffs were looming. “Every day I wake up thinking, is this the day I lose my job?” a UMG employee said in February.
“It is a particular kind of torture to leave people guessing for an extended period of time,” adds a music lawyer who has artist clients signed to UMG labels. “Your job is your No. 1 source of security. You add on top of already stressed individuals’ psyche the uncertainty of whether or not they’re gonna have a job tomorrow and draw that out for months.”
A UMG spokesperson declined to disclose any headcount for the cuts. In the meantime, sources say executives and department heads have received some generous exit packages on their way out the door.
For others outside the labels who work with them on behalf of clients, the layoffs — at UMG, at Warner, where dozens were recently let go at Atlantic Records, and amid rumors that other labels will be following suit — have also made life difficult. With UMG specifically, one manager with an artist signed to a UMG label says that the stress permeating the labels has made it hard to plan a rollout for his act. And a second music attorney notes that it’s been hard to do record deals within the UMG system knowing that the teams his artist speaks with may not be around by the time the deal is done.
Artist teams are also trying to understand how the cuts impact them. “The more I hear, the more stressed I am,” says another manager. There are “lots of firings across different positions. Some people are getting moved into jobs they aren’t in any way prepared for. And some people are now being asked to do what was previously three different jobs at once.”
There are more cuts to come in a “phase two” of the “strategic organizational redesign” next year, according to UMG’s investor presentation this week, which stated that “a combination of further ex-U.S. headcount reduction and other operational efficiencies” was set to begin in 2025. But not a single financial analyst asked questions about the extent of the layoffs on Wednesday. Instead, they asked about UMG’s battle with TikTok.
The layoffs and restructuring at the Universal Music Group have begun to take place, multiple sources tell Billboard.
As part of the new structure, several top executives have been laid off, Billboard can confirm. Interscope Geffen A&M president of promotion Brenda Romano is among those to have been let go, as well as Interscope’s executive vp/head of media strategy and communications Cara Donatto and Def Jam executive vp of media and brand strategy Gabe Tesoriero.
So far, Billboard has confirmed over two dozen layoffs across UMG labels, including Interscope, Republic, Capitol, Def Jam and Island.
The layoffs began shortly after Universal wrapped up its fourth quarter earnings call Wednesday, during which chairman/CEO Lucian Grainge confirmed a long-rumored “strategic organizational redesign” that would result in “reduced headcount” and “efficiencies.” A UMG spokesperson declined to say how many staffers would be affected by the cuts, but the company told investors that it expected to realize 250 million euros ($271 million) in annual savings by 2026 through the move. Universal saw 11.11 billion euros ($12 billion) in revenue in 2023, and reaped a net profit of 1.26 billion euros ($1.37 billion).
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The layoffs had been in the offing since last October, when Grainge mentioned that UMG would need to “cut to grow” in a Q3 earnings call, then said in a January New Year’s memo to staff that despite UMG being the “most successful company in the history of the music industry,” the company would “further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale.” A spokesperson then confirmed cuts were coming in a statement Jan. 12, after Bloomberg reported the company planned to cut “hundreds” of jobs in the first quarter of the year.
Layoffs continued Thursday (Feb. 29), and some staffers speculated to Billboard that they may continue into Friday. There is no word on how many people were affected, nor any specifics in what departments they were, though in addition to promotions, publicity and A&R, at least some people in logistics, synch, international and commercial marketing were among the layoffs. Staff members from Republic, Interscope, Capitol, Island and Def Jam were among those laid off.
On Feb. 1, Grainge announced in an internal memo that Universal would be restructuring its label operations, adopting a loose East Coast-West Coast operation wherein Republic Records co-founder/CEO Monte Lipman would begin to oversee Republic, Def Jam, Island and Mercury, and Interscope Geffen A&M chairman/CEO John Janick would take responsibility for Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note. Days later, Capitol Music Group chair/CEO Michelle Jubelirer announced she was stepping down from her post and was replaced by Geffen president Tom March as chairman/CEO of Capitol and Universal Music Publishing Group executive Lillia Parsa joining as co-president alongside Arjun Pulijal.
As part of the new alignment, and with Donatto and Tesoriero out at Interscope and Def Jam, respectively, it appears that Capitol Music Group executive vp/head of media strategy and relations Ambrosia Healy will now run corporate communications for the West Coast labels, and Republic Records executive vp of media and artist relations Joe Carozza will oversee corporate communications for the East Coast labels.
Reps for UMG did not respond to multiple requests for comment. Additionally, reps for several individual labels either declined to comment or could not be reached for comment.
This story is developing.
In January 1999, Universal Music Group laid off hundreds of employees during a wave of consolidation with PolyGram. “The biggest staff cuts were at Geffen and A&M, two Los Angeles-based labels that have been folded into Interscope Records … and at Island Records, which has been merged with Mercury,” Billboard reported at the time, predicting that the cuts would affect label rosters, with “baby bands … expected to suffer the most casualties in the shake-ups.” In an interview with The New York Times, one artist manager described the impact of the merger on his band as if “a car [got] shut off in midgear.”
Roughly 25 years later, UMG is expected to cut hundreds of jobs to create “efficiencies in other areas of the business so we can remain nimble and responsive to the dynamic market,” according to a January statement from the company. Warner Music Group has announced layoffs of more than 800 people in two rounds over the last 12 months; on Monday, WMG label Atlantic Records announced additional cuts of about two dozen employees, primarily in the radio and video departments. (Sony Music is also expected to trim staff, according to sources; a rep for Sony declined to comment.)
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These cuts herald a leaner approach to the major-label business, and some talent and their representatives are worried about how this impacts their future.
Artists “are going to be upset,” says Mike Biggane, who was head of curation for Spotify, then worked at UMG as global executive vp of music strategy and tactics until last year. “The teams that artists signed up for and have been going to battle with will all be gone. That is going to impact the managers and the remaining label staff, who are already spread too thin.”
“If you’re not a multi-platinum artist, good luck,” says Allen Kovac, a longtime manager who had several acts in the UMG system during the 1999 consolidation.
A rep for UMG declined to comment. Speaking to financial analysts on Wednesday, UMG CEO Lucian Grainge said that “when it comes to supporting their rosters, [labels] will have access to our highest performing internal teams and resources to bring the new artists to even higher levels of success.”
And some executives were more sanguine about the impact of the upcoming staff cuts. Chris Anokute manages Taela, who was signed by Michelle Jubelirer before she recently left Capitol Music Group. “I’m very grateful to Michelle for signing her,” Anokute says. “Now there’s new management, and I’m excited to work with the new team to keep on developing her. I’m not worried for one second.”
Major labels have been consolidating internally for more than two decades. In 2004, Atlantic Records and Elektra Records merged as part of a Warner Music Group shake-up that included 1,000 layoffs. “Warner began cutting money-losing and under-performing artists from its merged Atlantic-Elektra label’s roster, and is preparing to let go as many as half of the label’s 170 acts,” The Washington Post reported.
Later the same year, BMG and Sony Music merged. “In each market tough decisions will have to be made about the senior executive lineup, overall staffing and artist rosters,” Billboard wrote.
While layoffs were typically followed by roster trimming in the past, history can serve only as a limited guide when assessing the latest round of cuts. “The environment today seems quite different to that of the late 1970s and early 1980s — the first time the industry experienced serious contraction — or the early 2000s,” says Adam White, a former Billboard editor-in-chief who later served as UMG vp of international communications. “During both of those time periods, industry sales slumped significantly and staff cutbacks were widespread. Isn’t that in contrast to the current environment, with revenue admittedly not growing at previous, double-digit rates — but still growing?”
Nonetheless, with leaner staffs, “you either need to spread your remaining staff more thinly or serve a smaller roster,” says Peter Sinclair, who worked at UMG for five years before founding beatBread, an artist-funding platform, in 2020.
Some major-label executives contend the staffing changes their companies are making will let them offer more resources to artists, not less. WMG CEO Robert Kyncl, for example, told staff that the cost savings from recent cuts would free up money that can be put towards “increasing funding behind artists and songwriters,” while Atlantic Music Group chairman/CEO Julie Greenwald said the company would be “bringing on new and additional skill sets in social media [and] content creation” to “help artists tell their stories.” In a memo to staff on Wednesday (Feb. 28), Grainge wrote that “our long-term growth strategy, including this organizational redesign, represents a new paradigm for artist support.”
However, many acts believe major-label staffs are already stretched perilously thin, and that layoffs will only exacerbate artists’ feelings of being underserved. “Way too many of my clients complain about what the labels aren’t doing for them,” says Todd Rubenstein, an entertainment attorney. “Even if there is a whole plan they come in with, it’s still not getting serviced.”
“I’m not anti-label; I think every single artist we have is on a major label,” adds Crush Management founder Jonathan Daniel. But “the reason I set up my company the way I did” — Crush has its own marketing and radio promotion staff — “is because labels always have too many artists for how many people work there.”
Labels are already more willing to trim their rosters than they were in the past, and A&R executives say this may have intensified independent of the recent layoff announcements, after a period of excessive signing driven by pressure to maintain market share and an abundance of viral hits on social media. “Would [layoffs] speed up the process of trimming the roster?” asks entertainment attorney Michael Sukin. “Sure, but labels don’t need an excuse.”
That said, when employees are laid off or leave to take another job, some artists will lose their internal advocates. Executives believe it’s likely that there are acts in the UMG system who won’t have their options picked up after the layoffs because no one inside the buildings will fight to keep them.
“Any artist that’s more singles-based is more of a risk on your balance sheet,” says one A&R executive-turned-manager. “They want artists that have sticky fan bases that will be there and support them when they don’t have a hit.”
This all sounds nerve wracking for artists, who are, after all, the lifeblood of record companies. In reality, though, an artist who was a label’s 40th most important act may not have been getting a ton of help anyway — as a UMG executive told The New York Times around the time of the Polygram merger, “for the [artists] we let go, they’ve probably already been dragged over the coals by a record label that can’t do the best job for them.” Nick Stern, another longtime artist manager, is fond of saying “there’s nothing better than being a top five priority at a major label, and nothing worse than being 20 to 50.”
And while artists who got dropped by a major label in 1999 didn’t have many ways to get their music heard around the world, that’s not the case in today’s digital industry. Song creation, distribution and marketing are now all far more affordable. “As the majors’ gatekeeping role shrinks, artists have more options, more leverage, more control and more creative freedom,” Sinclair says. “If you’re an artist and you get dropped by the majors, I’d recommend you take it for what it is: an opportunity.”
When Biggane left UMG last year, he started Big Effect, a company developing technology designed for smaller artist teams to release products and manage catalog effectively. He predicts an “exodus of talent on both sides — people working in the industry trying to provide services and artists looking for services.”
“They’re all going to come out in the independent market,” Biggane says, “and try to find each other.”
Additional reporting by Kristin Robinson
As part of its fourth-quarter earnings call, Universal Music Group (UMG) said that a “strategic organizational redesign” it announced Wednesday (Feb. 28) would result in 250 million euros ($271 million) in annual savings by 2026, with a first phase of 75 million euros ($81.3 million) in 2024 and 125 million euros ($135.5 million) in 2025. The redesign is expected to include the long-awaited layoffs that have been signaled by the company for months, though the specifics of how many employees would be affected and what percentage of the overall workforce it would amount to was not disclosed.
The “plan is designed to achieve efficiencies in targeted cost areas while strengthening labels’ capabilities to deepen artist and fan connections,” according to a press release. The first phase will involve a general headcount reduction, while the second phase, which is scheduled to begin next year, will be “a combination of further ex-U.S. headcount reduction and other operational efficiencies,” according to the company’s investor presentation.
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A representative for UMG declined to comment on the specifics of the reductions.
“To put it simply, we’re creating the blueprint to the music company and the labels of the future,” chairman/CEO Lucian Grainge said on the earnings call, adding that labels will have “even greater flexibility and speed” in supporting artists, as well as “access to our highest performing internal teams and resources to bring artists to even higher levels of success.” The redesign “carefully preserves what we’re best at: creative A&R, marketing independence, unique label brand identities” and an entrepreneurial and competitive spirit, Grainge continued. The efficiencies, he said, will “generate more impactful support for promotion, distribution, audience monetization, D2C, e-commerce and other areas.”
In its fiscal year 2023, UMG earned a net profit of 1.26 billion euros ($1.37 billion) on revenues of 11.11 billion euros ($12 billion), the company said.
Layoffs at UMG have been telegraphed for months, ever since Grainge said in a third-quarter earnings call last October that UMG would need to “cut to grow.” Rumors further began to circulate in early January, when Grainge noted in his New Year’s memo to staff that despite UMG being the “most successful company in the history of the music industry,” the company would “further evolve our organizational structure to create efficiencies in other areas of the business, so we can remain nimble and responsive to opportunities as they arise, while also taking advantage of the benefits of our scale.”
The impending layoffs were more explicitly acknowledged on Jan. 12, after Bloomberg reported that UMG would be cutting hundreds of jobs sometime in the quarter. In response, a UMG spokesperson released a statement that echoed Grainge’s note, including that the company would “maintain our industry-leading investments in A&R and artist development,” while also promising to continue “investing in future growth — building our e-commerce and D2C operations, expanding geographically, and leveraging new technologies.”
Things then came into clearer focus on Feb. 1, when Grainge announced in an internal memo that Universal would be restructuring its label operations, adopting a loose East Coast-West Coast operation wherein Republic Records co-founder/CEO Monte Lipman would begin to oversee Republic, Def Jam, Island and Mercury, and Interscope Geffen A&M chairman/CEO John Janick would take responsibility for Interscope, Geffen, Capitol, Motown, Priority, Verve and Blue Note. Days later, Capitol Music Group chair/CEO Michelle Jubelirer announced she was stepping down from her post and was replaced by Geffen president Tom March as chairman/CEO of Capitol and Universal Music Publishing Group veteran Lillia Parsa joining as co-president alongside Arjun Pulijal.
Still, the threat of layoffs continued to loom, with many staffers unsure of their positions and unclear as to when the cuts would arrive. The first phase of the redesign announced today will be “execute[d] on immediately,” according to a press release, though the scale in terms of people remains unclear.
UMG is not alone in instituting layoffs in recent months. On Feb. 7, Warner Music Group (WMG) announced simultaneously that it had just recorded its best quarter in its history and would also be laying off 10% of its staff, or some 600 people, and offloading its owned and operated media properties in an effort to save around $200 million that it said it would reinvest in the company. That itself came less than a year after then-new WMG CEO Robert Kyncl announced a 4% staff reduction, affecting some 270 people, “in order to set us up for long-term success.” Cuts at other large record companies are also expected, sources say.
The broader music and media industry is also in the midst of a brutal run of layoffs: Atlantic Music Group, SiriusXM, Amazon Music, TikTok Music, CAA, Discord, Meta, Downtown, YouTube, TIDAL and Spotify have all undergone layoffs in just the last year alone, to name just a few, some of them more than once.
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
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Employees at VICE were informed that the media group is stepping back from online news and preparing a round of heavy layoffs.
On Thursday (February 22), VICE News CEO Bruce Dixon sent out an internal memo informing employees that the media company would no longer be publishing on its flagship news site. “It is no longer cost-effective for us to distribute our digital content the way we have done previously,” Dixon wrote. “As part of this shift, we will no longer publish content on vice.com, instead putting more emphasis on our social channels as we accelerate our discussions with partners to take our content to where it will be viewed most broadly.”
There was more to the stunning development. “With this strategic shift comes the need to realign our resources and streamline our overall operations at VICE,” Dixon added. “Regrettably, this means that we will be reducing our workforce, eliminating several hundred positions. This decision was not made lightly, and I understand the significant impact it will have on those affected. Employees who will be affected will be notified about next steps early next week, consistent with local laws and practices.” The moves would not affect Refinery29, with the women’s lifestyle brand and website that Vice acquired in 2019 continuing as a standalone business.
The news reflects a stunning fall for VICE, which began as a publication covering punk rock and alternative music in Montreal in the 1990s founded by Suroosh Ali, Shane Smith, and Gavin McInnes who would go on to found the Proud Boys, the fascist organization that has aligned itself with the American far-right. At its peak, the Brooklyn-based company delivered news in a highly independent format with correspondents across the globe in addition to original programming such as Most Expensivest hosted by 2Chainz and F—- That’s Delicious by Action Bronson. The “Easy Rider” rapper took to social media on Friday, saying: “JUST WANTED TO MAKE SURE YA’LL KNOW I NEVER STOPPED MAKING F—K THATS DELICIOUS BECAUSE VICE IMPLODED.”
Representatives for VICE declined to comment when contacted by the press. The news comes amid several media groups announcing their downsizing measures such as Pitchfork and GQ, and Complex Media being sold off to the Ntwrk e-commerce platform. They joined news outlets such as The Washington Post, the Los Angeles Times, CNN, and ABC News which had initiated their cuts in recent weeks and months.
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BuzzFeed is selling off Complex Media to an e-commerce platform to firm up its financial footing and also announced company-wide layoffs.
According to reports, BuzzFeed has sold off Complex Media to the Ntwrk e-commerce platform. The group announced the sale on Wednesday (February 21), which cost $108.6 million in an all-cash deal. Universal Music Group will serve as a strategic partner in the deal, with Jimmy Iovine, Goldman Sachs, and Main Street Advisors serving as investors. The key franchises of Complex including First We Feast, and Hot Ones, will remain under BuzzFeed Inc.’s umbrella. Ntwrk released a video reel announcing the acquisition and their plans of the new company being “an e-commerce platform anchored in sneakers, streetwear and collectibles with content and music.”
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The deal also includes BuzzFeed receiving $5.7 million for Complex’s use of their New York offices in addition to “severance- and other employment-related costs.” BuzzFeed also announced that there would be a round of layoffs to reduce costs, expected to cull about 16% of remaining employees. It’s the second such round since last April when BuzzFeed closed its news division and let go of 180 employees.
“The sale of Complex represents an important strategic step for BuzzFeed Inc. as we adapt our business to be more profitable, more nimble and more innovative,” said BuzzFeed Inc. CEO Jonah Peretti in a press release. “This is also an opportunity to unlock greater value for the Complex brand by combining it with Ntwrk’s expansive commerce-driven business.” BuzzFeed originally acquired Complex Media in 2021 for a price tag of $294 million. The brand said it will provide further details on its restructuring on February 28.
“Complex has been a beacon of culture and innovation for over two decades,” Ntwrk co-founder Aaron Levant said in a statement. “My journey with Complex began as an admirer of their original magazine in 2002 and it has now come full circle as I step into the leadership role. Alongside this impressive team, we will create the definitive global content, commerce, and experiential platform of convergence culture.” Interscope Geffen A&M and Capitol Music Group have already declared intentions to work with the new company. “Combining the power and reach of Complex with the Ntwrk engine serving creators across music, fashion, and art will be transformative for the next generation of consumer technology,” Iovine said in a statement concerning the deal.