Warner Music Group will undergo layoffs as part of a wider cost-saving and restructuring initiative, WMG Robert Kyncl told staff in an internal memo on Tuesday.

In the memo, reviewed by The Hollywood Reporter, Kyncl wrote that WMG is looking to reduce costs by about $300 million to future-proof the company and reinvest in the business, particularly into the music itself. Kyncl didnt disclose how many employees would be let go but wrote that WMG is looking to cut about $170 million through headcount reduction. The remaining $130 million will be targeted through administrative and real estate expenses, per the memo. Kyncl wrote that many of the changes would happen within the next three months, and the rest in the 2026 fiscal year. I know that this news is tough and unsettling,and you will have many questions, Kyncl wrote. The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. Youll be hearing from your local leaders as soon as possible about your area of the company and your role within it. Were communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and were committed to acting with empathy and integrity.

Warner has underwent significant changes in the past several years, including several rounds of layoffs. The most notable change however was Elliot Grainge taking over as CEO of Warners Atlantic Music Group last year, replacing longtime Atlantic executive Julie Greenwald. WMG CEO of recorded music Max Lousada, along with 300 Entertainment co-founder Kevin Liles, stepped down from their posts as well.

News of the cost-saving measures comes hours after WMG had disclosed a new $1.2 billion joint venture with Bain Capital to acquire recorded and publishing catalogs. In Kyncls memo, he highlighted both MA and AR as areas of particular focus for WMGs growth plan. WMG had posted an underwhelming quarterly earnings report back in May, but the company has also found recent success with upcoming artists like Atlantics Alex Warren whose Ordinary has topped the Hot 100 for four of the last five weeks and Warner Records Sombr, who has the No. 2 song on Spotifys Global 50 chart.

Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025, Kyncl wrote. These wins are powered by our ability to become simultaneously more effective and more efficient allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities.

Read Kyncls full memo below:

Hi everyone,

Two years ago, we began to transform our company; not just to tinker around the edges of an old model, but to build a fast, innovative, and collaborative organization that reflects how music moves in the new world.

Today, our strategy is gaining momentum. Our artists have held half of the Top Ten on the Spotify Global chart for the past ten weeks and nailed the No. 1 spot for all but four weeks of 2025.These arent just the biggest hits in the world today; theyre our evergreen catalog of the future. At the same time, were starting to see better progress in our global recorded music market share, while hitting new highs in music publishing. These wins are powered by our ability to become simultaneously more effective and more efficient allowing us to invest in great talent, boost our star-making expertise, and deepen our world-building capabilities.

Building on this success requires us to keep evolving. Today were announcing the remaining steps in our plan to help future-proof the company and unlock the next era of growth.Specifically, well be reducing our annual costs by ~$300 million as we reinvest in the business:~$170 million through headcount rightsizing for agility and impact, and ~$130 million in administrative and real estate expenses. Many changes will be implemented in the next three months, with the remainder in fiscal 2026.

I know that this news is tough and unsettling,and you will have many questions. The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward. Youll be hearing from your local leaders as soon as possible about your area of the company and your role within it. Were communicating this now so, as we move through the process, we can be as thoughtful and open as possible with all of you. These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and were committed to acting with empathy and integrity.

As we evolve, well be focused on these core drivers of our success:

Were putting more money behind the music via a new growth plan.

AR:Working with the ELT, weve sharpened our investment criteriaa more holistic and targeted approach to partnering with the worlds greatest musical talent, across (i) the most culturally potent and highest potential repertoire centers, (ii) globally managed off-roster catalog, and (iii) music publishing. MA:We also have an ambitious MA pipeline, especially for timeless catalogs. Our acquisitions of Tempo and start-up RSDL are good signposts of how we intend on growing both our copyrights and our capabilities. And, as youve seen today, weve announced an exciting venture with Bain Capital that adds up to $1.2 billion to our catalog purchasing power across both recorded music and music publishing. Were becoming a stronger, leaner company for greater cut-through.

TEAM:Our faster, more agile teams of local experts will be backed by a strengthened suite of services across Marketing, Distribution, Catalog, and Merchandising Direct-to-Fan. This aligns our collective efforts with our clearest priorities, making it easier for great artistry and ideas to shine through. Our recent changes at LATAM and Atlantic Records, following the long-term rejuvenation of Warner Chappell and Warner Records, prove that teams can get leaner, deliver massive No. 1s, and win market share all at the same time. TECH:Well continue to prioritize better digital tools for artists, songwriters, and employees. For example, well expand the rollout of the WMG Pulse app and add more features to give artists and songwriters insights, while landing the benefits of our financial transformation initiative as well as a vastly improved supply chain and data infrastructure. By simplifying how we work, our WMG One platform will enable deeper focus, stronger collaboration, and more powerful outcomes. In an ever-changing industry, we must continue to supercharge our capabilities in long-term artist, songwriter, and catalog development. Thats why this company was created in the first place, its what weve always been best at, and its how well differentiate ourselves in the future.

As we implement these changes, we promise to communicate with you regularly. Thank you for your patience and support for one another. Weve got some remarkable music coming, and I know that whatever challenges were navigating, your commitment to our artists and songwriters is unwavering.

Thank you,

Robert