Warner Music Group is shutting down its in-house podcast unit Interval Presents, affecting 600 employees or 10% of its workforce, as it exerts resources towards its "core business."
In its recent Security and Exchange Commission filing, the record label stated that the layoffs are part of the earlier announced "Plan" that will reduce costs for its in-house ad sales division.
Warner Music Group Reveals Cost-Cutting Plans for Next 10 Years
The "Plan" in question refers to Warner Music CEO Robert Kyncl's 10-year goal "to free up more funds to invest in music and accelerate our growth," according to a letter obtained by Variety.
Warner Music aims to save at least $200 million in annual costs to reinvest in its primary music projects.
The company first launched Interval Presents in 2022 to cater to a unified platform for creators and artists to expand its music roster.
The announcement comes after the group reported a record-high $1.75 billion revenue, or $193 million net profit, for the first quarter of 2024.
Is the Music Industry Slowing Down?
One of the other reasons the company was relocating resources was due to the slower growth following the profit boom during the pandemic.
While top charters continued to rake in great revenues, many music labels reported slower growth for smaller artists, the lowest since 2016.
Kyncl initiated job cuts within Warner Music last spring, affecting 270 workers, a decision the CEO described as "hard choices in order to survive."
It is worth noting that Kyncl came from a tech industry background rather than from the music or entertainment industry as it does with the previous
Kyncl was chosen by his predecessor Stephen Cooper after the former CEO got involved with Web3 and NFTs which he previously praised as "better foundational technologies."
The layoffs come at a time when many tech companies have also started cutting off staffers for various cost-cutting reasons amid higher revenues in the last quarter.
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