Multiple layoffs at Universal Music Group as $270 million cost-cutting program continues

Time flies: it’s been two and a half years Universal Music Group (4,997 items)” href=”https://www.musicbusinessworldwide.com/companies/universal-music-group/”>Universal Music Group announced a cost reduction program to reduce EUR 250 million euros (approximately USD $270 million) in annual expenditure.

The move comes amid a broader wave of layoffs across the music and entertainment industry, and follows the launch of a comparable cost-cutting program at Warner Music Group (3,889 articles)” href=”https://www.musicbusinessworldwide.com/companies/access-industries/warner-music-group/”>Warner Music Group in 2023.

UMG‘s program, initially announced in February 2024 and expected to conclude next year, was always intended to include “a combination of workforce reductions and other operational efficiencies.”

MBW has confirmed via sources that the latest wave of executive departures at Universal has been confirmed in recent days.

Senior executives we’re told are leaving the company understand Tunji BalogunChairman and CEO of Def Jam Recordingswho will leave UMG by the end of the year.

Other executive departures include Nicole Wyskoarko And Sam Ribackboth of whom are leaving their positions as President, A&R at Interscope Geffen A&M (IGA).

Elsewhere, Ben Mortimer (29 articles)” href=”https://www.musicbusinessworldwide.com/people/ben-mortimer/”>Ben Mortimer leaves his post as president of Polydor label group in the United Kingdom, while Hannah Neavescurrently president of UMRecordings UK, becomes consultant.

Rebecca Allen (37 articles)” href=”https://www.musicbusinessworldwide.com/people/rebecca-allen/”>Rebecca Allenchief artist and director of strategy at Universal music group United Kingdomannounced earlier this week that she was leaving her role after 27 years at Universal.

In the meantime, Mark Crossingham steps down as Managing Director of UMG Ireland and will be replaced by UMG Ireland Younger Nick.

The wave of layoffs in the US and UK follows UMG downsizing in some divisions within territories including Germany And Canada in recent weeks.

In a statement referring to the latest changes, a UMG The spokesperson said: “Our continued success is based on our ability to anticipate industry changes, act early to better serve all of our artists and songwriters, and seize opportunities in the fastest growing areas of music. Our leading investment in artist development has always guided this work and will continue to do so.

We bring new skills and technologies and connect the expertise of our teams to achieve greater global impact and greater efficiency. Where we have made the difficult decision to eliminate some positions, we are deeply grateful for the contributions of those who are leaving us.

MBW understands that the latest phase of changes will result in a broader mandate for Island Records (632 articles)” href=”https://www.musicbusinessworldwide.com/companies/universal-music-group/island-records/”>Imran Majid and Justin Eshak of Island Records, while Jeffrey Remedios (currently President and CEO of Republic Collective and previously President and CEO of UMG Canada) and Tyler Arnold (Mercury Records Chairman and CEO) Takes on New Leadership Roles at Republic Records (326 articles)” href=”https://www.musicbusinessworldwide.com/companies/universal-music-group/republic-records/”>Republic Records.

MBW also understands that Laura Carter, Ramon Alvarez-SmikleAnd Michelle An will take on broader leadership roles within IGA.

Universal music group Financial Director Matt Ellis said during the company’s full-year 2025 earnings conference call in March that UMG remains “on schedule” with its 250 million euros cost savings program.

Elise confirmed that 90 million euros cost savings were achieved in 2025, and said he expected another 40 to 50 million euros in “Phase 2” of savings to be made in 2026.

A supplement 35 to 45 million euros savings should benefit by 2027, which will close the UMG program.

Warner Music Group announced in March 2023 that it would reduce 270 jobs, or around 4% of its global workforce.

In February 2024, the company announced a new series of approximately 600 job cuts, before extending this figure to approximately 750 later that year, with expected annual savings revised to around $260 million.

In July 2025, WMG announced a new round of cuts worth around 300 million dollars per year, including approximately $170 million through which CEO Robert Kyncl (299 articles)” href=”https://www.musicbusinessworldwide.com/people/robert-kyncl/”>Robert Kyncl called “workforce resizing”.

MBW estimated in January that WMG’s 2025 cycle would result in the loss of approximately 1,000 roles, in addition to approximately 1,000 eliminated in 2023 and 2024.

The cuts UMG coincides with layoffs Netflix (523 articles)” href=”https://www.musicbusinessworldwide.com/companies/netflix/”>Netflixand a warning about job losses at the cinema giant Sky Dance.

Netflix is cutting 6% of its workforce – approximately 1,000 jobs – according to an internal memo first reported by The Wall Street Journal on Wednesday (October 14).

Most of the reductions will affect Netflix‘s product, technology, legal and human resources teams, according to reports.

Primordial finalized the acquisition of Warner Bros. (567 articles)” href=”https://www.musicbusinessworldwide.com/companies/access-industries/warner-music-group/warner-records/”>Warner Bros. Discovery on October 6, creating a new company called Sky Dance.

In a press release announcing the finalization of the transaction, Sky Dance said it was “targeting at least $6 billion in ongoing synergies within three years.”

In a memo to staff reported by CBS NewsPresident and CEO of Skydance David Ellison and co-CEO Ynon Kreiz said: “The integration of two companies will result in changes, including difficult decisions that will affect our workforce. »

Paramount Skydanceborn from the merger of Skydance Media And Paramount Worldwide in August 2025, began cutting 2,000 jobs in the United States by the end of October of the same year, according to reports.

UMGThe adjusted EBITDA margin amounted to 20.5% in the second quarter of 2026, down compared to 22.7% in the previous year’s quarter, according to its latest results.Music Business Worldwide