Kevin Winter
Taylor Swift’s file firm, Common Music Group (OTCPK:UMGNF) will likely be shedding a whole bunch of workers in coming weeks.
. Common Music is the world’s largest file firm (dwelling to artists comparable to Adele and Billie Eilish) and had about 10,000 workers on the finish of 2022.
“We proceed to place UMG to speed up its management in music’s most promising progress areas and drive its transformation to capitalize on them,” a UMG spokesperson instructed Looking for Alpha. “Over the previous a number of years, we’ve got been investing in future progress—constructing our ecommerce and D2C operations, increasing geographically, and leveraging new applied sciences. Whereas we preserve our industry-leading investments in A&R and artist growth, we’re creating efficiencies in different areas of the enterprise so we will stay nimble and attentive to the dynamic market, whereas realizing the advantages of our scale.”
The corporate’s largest division, recorded music, will likely be hit the toughest, Bloomberg stated, citing individuals aware of the matter. The information outlet initially reported the layoffs.
Shares rose practically 2% on Friday.
Common Music’s income rose 3% within the third quarter of 2023 in comparison with progress of greater than 13% a 12 months earlier.
Chief Govt Officer Lucian Grainge stated on the corporate’s most up-to-date earnings name that the administration workforce has expertise in value chopping.
“We have at all times had a program known as the place we minimize to develop and minimize to develop is we are going to minimize overheads to be able to develop elsewhere,” Grainge stated. “And we do have expertise in managing the enterprise and managing the groups and the companies inside that make up the group. And we have got a plan.”
“We’ll minimize overhead to be able to develop it elsewhere,” he stated on the decision.
Opponents are decreasing employees, together with Warner Music Group (WMG), which minimize its workforce by round 4% final 12 months.
(This story has been up to date to verify the layoffs.)