UPDATED: As expected, in the wake of the impending departures of top Atlantic Music Group executives Julie Greenwald and Kevin Liles, a large wave of layoffs have begun at the storied company as it begins what Warner Music CEO Robert Kyncl describes as “a new dynamic structure for the label group.”
A rep for the company declined comment, but sources tell Variety the number of people affected is around 170, and that the move is also a consolidation. Known to be leaving Atlantic are GM/executive VP Paul Sinclair, president of Black music Michael Kyser, longtime head of publicity/EVP Sheila Richman, marketing EVP Grace James and touring SVP Harlan Frey. Departing Atlantic sister company 300 Elektra are EVP/general counsel Margo Scott, EVP Chris Brown, head of marketing Katie Robinson, and sales/streaming chief Adam Abramson, among others.
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Incoming Atlantic CEO Elliot Grainge officially starts work on Oct. 1; Warner’s head of recorded music, Max Lousada, also announced his departure earlier this year, clearing the way for a structure in which all of the company’s label and publishing heads report directly to Kyncl. The move follows the layoffs of several dozen employees over the past 18 months.
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The streaming boom that lifted the music industry’s fortunes in the mid-2010s after years of decline has leveled off, — with the recorded-music industry posting just 4% growth in the first half of 2024 after many years of double-digit increases — and all three major companies and many others have been laying off staff throughout the past couple of years. The downsizing seems likely to continue in the coming months as the industry seeks new revenue sources to replace the slowing income from streaming.
Variety has obtained an internal memo from Kyncl, which follows in full.
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
Variety will have more on the situation as it develops.
