Atlantic Music Group announced more staff layoffs on Thursday (Sept. 19) as the process of remaking the company continues.
“I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra,” CEO Robert Kyncl said in a staff memo obtained by Billboard. “In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years.”
These cuts follow the announcement in August of a significant executive restructuring: 10K Projects founder Elliot Grainge will take over as CEO of Atlantic Music Group, starting October 1. As part of his promotion, 10K will move under the Atlantic Music Group umbrella — joining Atlantic Records, Elektra and 300 — while veteran executive and longtime Atlantic leader Julie Greenwald will be heading for the exit. Kyncl’s memo promised that the company will “be unveiling a new dynamic structure for the label group” next week.
The memo did not say how many Atlantic employees were being let go. Sources expect the layoffs to be significant and to affect multiple departments.
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Kyncl has been busy retooling WMG since he took over at the start of 2023. That metamorphosis has come hand in hand with layoffs; Atlantic’s latest cuts are the fourth round in the extended Warner Music Group family in roughly 18 months.
The company laid off 4% of staff, or about 270 people, including several at Atlantic, in March 2023. “To take advantage of the opportunities ahead of us, we need to make some hard choices in order to evolve,” Kyncl wrote in a memo to staff at the time. In February of this year, WMG laid out plans to cut another 10% of staff, primarily from the company’s media properties — like Uproxx and HipHopDX, which it acquired in August 2018 — as well some in corporate and support roles.
The same month, Atlantic initiated an additional round of layoffs, albeit much smaller in scope, cutting roughly two dozen employees in the radio and video departments. “As hard as it is to say goodbye to our friends and valued colleagues, it is critical that we keep retooling the company and add new resources and skill sets to our business units,” Greenwald wrote in an email at the time.
Greenwald is now on her way out. So is WMG CEO of Recorded Music Max Lousada; his role is not being replaced. Similarly, 300 Entertainment co-founder and current chairman/CEO of 300 Elektra Entertainment Kevin Liles is also exiting the company without replacement. Other executives are also expected to depart as part of this restructuring, sources say.
This is just part of the change sweeping the company as Kyncl seeks a “flatter structure.” Warner Records will now also oversee Warner Music Nashville moving forward, and the heads of global catalog, marketing, ADA (distribution) and WMX (the fan and merch division) will all report directly to Kyncl.
All three major label groups have gone through changes this year. In February, the Universal Music Group reorganized its label divisions into a loose East Coast-West Coast structure, aligning Republic, Island, Def Jam and Mercury under Republic Recording Company chairman/CEO Monte Lipman and Interscope, Geffen and Capitol under Interscope Capitol Labels Group chairman/CEO John Janick, moves that came with some significant layoffs. Sony Music also underwent layoffs this year, though not to the same extent as the other two companies, sources have said.
Read Kyncl’s full memo below:
Hi everyone,
Since we announced Julie would be stepping down, we’ve been thoughtfully working on how to evolve Atlantic Music Group for the future. Next week, we will be unveiling a new dynamic structure for the label group. Elliot begins as CEO of AMG on October 1.
As part of this reorganization, we will unfortunately be saying goodbye to talented people. I know you have been waiting to hear the plan, and rather than carry out changes piecemeal, we decided to make these difficult choices in one go.
Today will be a tough day, and by 9pm ET you will have heard if your job is affected. Your leaders and the People team will provide you with all the important details. We are committed to helping those impacted through this with the utmost respect, and supporting them with a runway during the transition.
I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra. In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years. We wish you the very best and know that you will continue to do great things in your next chapters.
WMG is transforming swiftly this year, in a fast-paced, fiercely competitive industry. As always, delivering outstanding results for artists and songwriters is our highest priority in all our choices.
As I mentioned, you will hear more about our plan for AMG next week, with Elliot making an announcement about the leadership team. In the meantime, we have so much incredible music in the market, and some outstanding projects on the way. Your continued support of teammates is amazing, and your run-through-walls focus on the music is extraordinary.
Thank you and take care,
Robert
