A famous entertainment company is now laying off 600 employees, or about 10% of its workforce, according to a Wednesday filing.
Warner Music said the layoffs are part of a broader restructuring plan aimed at saving costs to invest in more music and “accelerate the company’s growth for the next decade.”
The layoffs are expected to save the company a whopping $200 million by the end of 2025.
The majority of the savings will be allocated toward increasing investment in Warner Music’s core music units and new technologies.
According to the filing, the job cuts will be concentrated in teams such as the in-house ad sales business and other “various support functions.”
The company expects to complete its $85 million in severance payments by the end of 2026.
“Today, we’re announcing a plan to free up more funds to invest in music and accelerate our growth for the next decade.
To do that, we have to make thoughtful choices about where we put our people, resources, and capital,” Chief Executive Robert Kyncl wrote.
“So, as part of that plan, we’ll be realizing approximately $200 million in annualized cost savings by the end of September 2025.
The majority of these savings will be reinvested, putting more money behind the music.”
The notice also mentioned the company is exploring the potential sale of entertainment websites Uproxx and HipHopDX and is shutting down social media publisher IMGN and podcasting brand Interval Presents.
“To the people who will be leaving us: you deserve a heartfelt thank you for your hard work and dedication,” Kyncl said in Wednesday’s memo.
“We’re fortunate that you’ve been part of the team.
We’ll be moving as thoughtfully and respectfully as possible, so you have the critical information you need, and we’ll support you through this transition.”
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A mall retailer now announces an unexpected liquidation sale up to 20% off at a major location outside Washington D.C., source report.
The Macy’s at the Ballston Quarter mall in Arlington, Virginia will shut its doors within weeks, reports The-Sun.
The announcement comes as the iconic retailer prepares to shut locations across the country.
However, the store did not confirm when it would be closing down, but is currently offering liquidation prices of up to 20% off.
Local outlet WTOP reports that the sale will run for “eight to 12 weeks.”
The store’s answering machine clarified that all sales will be final — no returns on the discounted items.
The location will stop receiving returns on previously purchased items on February 20.
Macy’s has struggled to keep its many locations afloat in recent years.
The company’s third-quarter sales were down 7% from the year before, WTOP reported.
Now, it’s closing five stores in the coming weeks.
On top of the Virginia location, two stores in California are shutting down in San Leandro and Simi Valley.
Tallahassee, Florida, and Lihue, Hawaii, are also losing their Macy’s stores.
On top of the five closures, the company has plans to lay off 13% of its corporate staff.
In total, the company will cut a whopping 2,350 jobs.
Macy’s shoppers in Virginia have a few other options to find another Macy’s.
A few miles east, near Pentagon City, Arlington hosts another location, reports The-Sun.
The location, an 11 mile drive from the old spot, is one of a few nearby.
There’s another Macy’s in McLean, and one in Washington DC.
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Also Read: A Massive Shoe Retailer Is Now Closing Locations
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