Warner Music Group to cut around 4% of its overall workforce

Warner Music Group Corp. (WMG) on Wednesday said it planned to cut about 270 jobs, or around 4% of its overall workforce, with most of them to be completed by the end of the company's next fiscal quarter. Robert Kyncl, the music entertainment giant's chief executive, said in a note to employees that "new business models are constantly emerging," and that the company was "positioning itself for this new phase of growth at the intersection of creativity and technology." He added that the company was reducing spending and open positions, and said it was shifting resources toward "new skills for artist and songwriter development and new tech initiatives." In a filing, WMG said it expected to book charges of around $46 million for severance payments and other related costs. The company also said it expected the dismissals to generate pre-tax savings of $22 million in fiscal year 2023. Shares were unchanged after hours.

-Bill Peters

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03-29-23 1744ET

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