KEY TAKEAWAYS
- Warner Music Group said it is going to increase its planned layoffs as part of an updated restructuring plan aimed at freeing up cash to boost its core music operations.
- The entertainment company said it would reduce its staff by about 750 employees or 13% of its total headcount, from original plans to lay off 600 people or 10% of its workforce.
- Warner Music shares edged lower in early trading Friday and have lost about 15% of their value so far this year.
Warner Music Group (WMG) said it is going to expand its planned layoffs as part of an updated restructuring plan aimed at freeing up cash to boost its core music operations.
The entertainment company said it would reduce its staffing by about 750 employees, or 13% of its total headcount, from original plans to lay off 600 people, or 10% of its workforce.
Most of the job cuts at the music label behind Dua Lipa and Coldplay will be in the company’s media properties, including in-house advertising sales, as well as support functions.
Warner Music Expects Pre-Tax Cost Savings of About $260M
Warner Music said it now expects pre-tax cost savings of about $260 million, most of which will be achieved by the end of fiscal 2025, up from its earlier estimate of $200 million in savings.
Warner Music shares edged 0.8% lower in early trading Friday and have lost about 15% of their value so far this year.