Hundreds of layoffs are expected to begin at Atlantic Records as parent company Warner Music Group (WMG) introduces "a new dynamic structure for the label group," Variety reports.
UPDATE (9/20, 9:09 a.m. ET): A source told Billboard that the number of cut jobs would be between 150 and 175.
UPDATE (9/20, 12:47 p.m. ET): Variety's source claims that number hangs at 170.
While the exact number of job losses is unclear at this time and a representative for the company declined the publication's request for comment, Variety estimates that they are "likely to number well into the hundreds."
Last month, it was announced that Julie Greenwald would step down from her role as Atlantic chairman and WMG veteran, and CEO of Recorded Music Max Lousada, would also depart, while Kevin Liles — chairman of WMG's 300 Elektra Entertainment label — announced his pending departure at the end of the year earlier this week. Greenwald will be succeeded by 10K Projects founder Elliot Grainge, who takes on the role starting October 1.
All of the parent company's subsidiary label and publishing heads will now report to WMG CEO Robert Kyncl, who announced the layoffs today in an internal memo obtained by Variety.
"As part of this reorganization, we will unfortunately be saying goodbye to talented people," he wrote. "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."
Kyncl added, "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 and both of the other three major recording companies, Universal Music and Sony Music Entertainment, have been laying off staff throughout the year as the mid-2010s streaming boom's decline has levelled off; the recorded-music industry posted just four percent growth in the first half of 2024 after many years of double-digit increases.
Founded in 1947, Atlantic Records was bought by Warner Bros.-Seven Arts, now WMG. In 2004, Atlantic and its sister label Elektra were merged into the Atlantic Music Group, overseeing a number of labels (including 10K Projects) representing nearly 300 artists.