Atlantic Records, the renowned label part of Warner Music Group (WMG), is undergoing a restructuring phase that involves significant layoffs.
WMG has been reducing its workforce for 18 months. This latest wave of layoffs will affect around 6-7% of employees, which corresponds to 150-175 workers. This is happening just as the new CEO Elliot Grainge's term is beginning.
A huge wave of layoffs at Atlantic Records and Warner
According to the company, this decision reflects the need to adapt to the new challenges of an industry where streaming revenue has begun to slow down. In fact, in the first half of 2024 the recorded music market saw an increase of only 4%, much lower than the previous years when there was a double digit growth.
The arrival of Elliot Grainge as CEO of Atlantic Music Group marks a new phase for the record label, historically one of the most influential in the global music scene. Grainge will officially start on October 1, 2024, and will likely announce further changes within the company.
Among those leaving the group there are also highly experienced employees: Margo Scott, Executive Vice President and Head of Legal Affairs at 300 Elektra Entertainment, Michael Kyser, President of Atlantic Records’ Black Music Division and Grace James, Executive Vice President and Head of Marketing at Atlantic.
These departures mark the end of an era, a crucial moment for the global music industry. Our thoughts go out to those who have been negatively affected by this situation. We hope the future will be bright for all of you!