Warner Music U.K. has begun laying off staff as part of the worldwide Warner Music Group restructure announced earlier this month.
“As part of WMG’s ongoing transformation to a music-based content company we are realigning WMUK to most effectively organize our resources,” an official statement issued today reads. “The music industry is undergoing fundamental changes and we are adapting our business accordingly, channelling our resources into growth areas, managing costs and investing in new business initiatives.”
With a consultation period still in progress, Warner Music U.K. declined to reveal specific redundancies. However, Billboard.biz understands measures will include merging the individual Atlantic Records U.K. and Warner Bros. Records U.K. finance, production and legal & business affairs departments into central offices serving both labels. Rhino’s U.K. and international operations will also be merged into a single entity. It is understood cuts have already been made in some other departments.
Billboard.biz understands that the company is looking to appoint a new director of business development as it copes with the shift from physical to digital distribution, and also expects to create other new positions as part of the restructure. Consequently, sources within the company anticipate an overall “headcount reduction” of around 15 people.
Earlier this month in the U.S., WEA cut 70 staffers serving the traditional bricks-and-mortar marketplace as part of Warner Music Group’s restructure, which was announced alongside a fiscal second quarter net loss of $27 million.