Warner Music Group, the entertainment and record label conglomerate, has announced a restructuring plan aimed at optimizing its core recorded music and music publishing businesses. As part of this strategy, the company will reduce its workforce by approximately 10%, resulting in the layoff of around 600 employees. Most of these job cuts will come from the owned-and-operated media properties business.

The implementation of the restructuring plan will involve nonrecurring pretax charges of approximately $120 million in fiscal 2024. In total, Warner Music Group expects to incur a nonrecurring pretax charge of $140 million. Out of this amount, about $85 million will be attributed to severance payments, which are scheduled to be completed by the end of fiscal 2026. The remaining $55 million will be a result of the disposal or winding down of the O&O Media Properties business.

The restructuring initiative is projected to generate pretax cost savings of around $200 million by the end of fiscal 2025. This move comes as Warner Music Group experiences a significant increase in revenue in the latest quarter, driven by the momentum in music publishing.

Toronto Shares Dip Despite Previous Day's Gains

AstraZeneca Forecasts Strong Growth in Revenue and Earnings in 2024

Leave A Reply

Your email address will not be published. Required fields are marked *