Atlantic Music Group announced more layoffs on Thursday (September 19) as the company's restructuring process continues.
“I want to acknowledge the hard work, passion and creativity of everyone beyond Atlantic, 300 and Elektra,” CEO Robert Kyncl he said in a staff memo he received Bulletin board. “Especially, I want to thank the people who will leave us. You have left an indelible mark on this company and the careers of the outstanding artists you have championed. Words never cut it in these situations, but we are forever grateful for all of your contributions and accomplishments over the years.”
Those cuts follow the announcement in August of a major executive shakeup: 10K Projects founder Eliot Grange will take over as CEO of Atlantic Music Group, as of October 1st. As part of its 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 directed to the exit. Kyncl's memo promised that the company will “unveil a new dynamic structure for the tag team” next week.
The memo did not say how many Atlantic employees were laid off. Sources expect the layoffs to be significant and affect many departments.
Kyncl has been busy rebuilding WMG since taking over in early 2023. He noted in his note this week that “WMG is rapidly transforming this year into a fast-paced, fiercely competitive industry.”
The company's transformation came hand in hand with layoffs. Atlantic's latest cuts are the fourth round of Warner Music Group's extended family in about 18 months.
The company laid off 4% of staff, or about 270 people, including a number at Atlantic, in March 2023. “To take advantage of the opportunities ahead, we need to make some tough choices to evolve,” Kyncl wrote. in a memo to staff at the time.
In February this year, WMG unveiled plans to cut another 10% of staff, mostly from the company's media — as Uproxx and HipHopDXwhich it acquired in August 2018 — as well as some in corporate and support roles.
That same month, Atlantic began an additional round of layoffs, albeit on a much smaller scale, cutting about two dozen employees in its radio and video divisions. “As difficult as it is to say goodbye to our valued friends and colleagues, it is important that we continue to retool 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. So does WMG's Recorded Music CEO Max Lusanda; his role is not replaced. Co-founder of 300 Entertainment and current president/CEO of 300 Elektra Entertainment Kevin Lyles also leaves the company without a replacement. And other executives are expected to leave as part of that restructuring, sources say.
This is just part of the change sweeping the company as Kyncl seeks a “flatter structure”. Warner Records will also oversee Warner Music Nashville moving forward, and the heads of global catalog, marketing, ADA (distribution) and WMX (the fan and merchandising division) will report directly to Kyncl.
All three major tag teams have undergone changes this year. In February, Universal Music Group reorganized its record divisions into a loose East Coast-West Coast structure, aligning Republic, Island, Def Jam and Mercury under the president/CEO of Republic Recording Company. Monte Lipman and Interscope, Geffen and Capitol under Interscope Capitol Labels Group President/CEO John Janickmoves that came with some significant layoffs. Sony Music also suffered layoffs this year, though not to the same extent as the other two companies, sources said.
Read Kyncl's full note below:
Hi everyone,
Since announcing that Julie will be stepping down, we have been thoughtfully working on how to evolve Atlantic Music Group for the future. Next week, we'll unveil a new tag team dynamic structure. Elliot starts as CEO of AMG on 1 October.
As part of this reorganization, we will unfortunately be saying goodbye to talented people. I know you've been waiting to hear the plan, and instead of making changes piecemeal, we've decided to make these tough choices in one go.
Today will be a difficult day and until 9 pm. ET you will have heard if your work is affected. Your leaders and the People team will provide you with all the important details. We are committed to helping those affected by this with the utmost respect and supporting them with a corridor during the transition.
I want to acknowledge the hard work, passion and creativity of everyone beyond Atlantic, 300 and Elektra. In particular, I want to thank the people who will leave us. You have left an indelible mark on this company and the careers of the outstanding artists you have championed. Words never cut it in these situations, but we are forever grateful for all of your contributions and accomplishments over the years. We wish you the best and know that you will continue to do great things in your next chapters.
WMG is rapidly transforming this year, in a fast-paced, highly competitive industry. As always, delivering great results for artists and songwriters is our highest priority in all of our selections.
As I mentioned, you'll hear more about our AMG plan next week, with Elliott making an announcement about the leadership team. In the meantime, we have so much incredible music on the market and some great projects on the way. Your constant support from your teammates is amazing and your attention to music is outstanding.
Thank you and take care,
Robert
