Warner Music Laying Off 600 Employees As It Looks To Sell Uproxx


Warner Music announced plans Wednesday to cut 600 employees in the record label conglomerate’s latest cost-cutting effort as the company seeks to sell off its entertainment portfolio, following a string of corporate layoffs in the tech industry.

Key Facts

Warner Music announced the layoffs in a Securities and Exchange Commission filing, with the majority coming from its corporate and media divisions, as the company attempts to sell its entertainment websites Uproxx and HipHopDX.

CEO Robert Knycl told employees Tuesday that the cuts come at a “pivotal moment in the evolution” of the company, but that even in a “position of strength,” he believes it is a “smart time to change, innovate, and lead,” according to a letter obtained by Variety.

The New York-based record conglomerate is expected to incur roughly $140 million in pre-tax charges as a result of the cuts through severance payments and other termination costs, the company’s second in less than a year, after it let go of another 270 employees last March, citing “hard choices in order to evolve.”

The layoffs are part of a cost-savings plan expected to lower costs by roughly $200 million annually by September 2025, Knycl said, with most of those savings reinvested.

The cuts also come on the heels of an impressive financial report, which saw the company’s revenue growing by a record 11% in the final quarter of 2023, with a net income of $193 million, well over the $124 million it took in over the same time the year before, and as the company lands half of the top 10 songs on the Billboard Hot 100.


The layoffs at Warner Music mark the latest in an onslaught of corporate job cuts that have primarily rocked the tech industry so far this year, following a steady stream of layoffs in 2022 and 2023. Some of the biggest so far this year came at payment firm Block, which cut 1,000 employees, as well as eBay, which cut 1,000 employees last month, PayPal, which cut 2,500, Wayfair, which cut 1,650 jobs, and Microsoft, which let go of a whopping 1,900 employees.


Even as U.S. layoffs hit a 10-month high last month, job growth remains strong, swelling by 353,000 positions in January, well above estimates of 185,000 new jobs, according to data from Dow Jones. That level of growth also beats the 216,000 jobs added in December, while hourly wage growth grew to 4.5% on an annual basis.

Further Reading

Okta, Zoom Cut Hundreds Of Jobs—Here Are 2024’s Tech Layoffs (Forbes)

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