WARNER REDUCING STAFF BY 10%

Warner Music Group will reduce its employee headcount by approximately 600 people and reinvest the majority of the money saved in its core recorded-music business.

The news was revealed to employees in a note from CEO Robert Kyncl as Warner reported normalized earnings of 11% revenue growth—its highest quarterly revenue ever. As part of the restructuring, Warner will exit its owned and operated media properties, including Uproxx, HipHopDX, IMGN and Interval Presents.

"We're in a position of strength, and that's the smart time to change, innovate and lead," Kyncl said. "Music is constantly morphing, so we need to morph with it."

The moves will realize "approximately $200 million in annualized cost savings by the end of September 2025," per Kyncl, who continued, "As we carry out our plan, it’s important to bear in mind why we’re making these difficult choices. We’re getting on the front foot to create a sustainable competitive advantage over the next decade."

The increased funding will help grow Warner's engagement with music, increase its value and evolve how the staff works together, which Kyncl identified as the company's three strategic priorities.

He added that Warner is "in an exclusive process for the potential sale" of Uproxx and HipHopDX. Podcasting brand Interval Presents and social-media publisher IMGN will be wound down.

"Thank you for your understanding, passion and determination," he said in closing. "We’re in an amazing industry, we’re partnered with many extraordinary artists and songwriters and now is the time for us to pioneer the future."