(Reuters) – Media company Warner Music Group Corp said on Wednesday it will layoff 4% of its workforce, or 270 employees, globally and cut down discretionary spending in the near future.
In an email sent to employees and seen by Reuters, Chief Executive Officer Robert Kyncl said the company was reallocating resources towards new tech initiatives among others.
Having enjoyed a boom in revenue during the pandemic-induced lockdowns, the music industry faces risks from surging inflation that has put a strain on consumers’ wallets.
Shares of Warner Music, the label behind artists such Ed Sheeran, Lizzo and Dua Lipa, have fallen more than 7% this year.
Warner Music employed nearly 6,200 employees worldwide, as of Sept. 30, 2022.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli)