You might have already heard that Atlantic Music Group laid off a collective employees as we speak (September 19), lots of whom have been key members of the corporate’s earlier period beneath Julie Greenwald.
The information follows current affirmation that Greenwald — together with colleagues Max Lousada and Kevin Liles — is leaving Warner Music Group later this month.
At this time’s departure of round 150 Atlantic staffers will understandably draw business consideration and chatter for days to return. (MBW clearly needs these affected all the perfect. Although it will likely be no shock to see some affluent new indie music firms now emerge from ex-Atlantic/WMG execs… Greenwald, Lousada, and Liles included.)
If one zooms out for a second, although, a wider business story comes into view: A new-look Atlantic, with a brand new technique – and a brand new identification – about to take flight.
MBW has confirmed through sources that Atlantic has this month dropped round a dozen artists from its roster, in what’s maybe the clearest sign but that the label beneath incoming CEO Elliot Grainge received’t be the identical as earlier than.
“When Elliot takes over as CEO of this label group on October 1, it’s going to be a clean web page – a brand new day for the way Atlantic works… and what Atlantic is.”
This has shades of when Aaron Bay-Schuck arrived as CEO/Co-Chairman at WMG’s different fundamental label, Warner Information, in 2018. In his first 12 months in cost at WR, Bay-Schuck lower over 50% of the roster signed to the label by its earlier administration. He additionally signed 30 new acts, a few of which – six years on – have fuelled a bumper 2024 for WR.
A supply at Atlantic instructed MBW as we speak: “It’s clear what’s happening right here, each with these lay-offs and the roster being in the reduction of.
“When Elliot takes over as CEO of this label group on October 1, it’s going to be a clean web page – a brand new day for the way Atlantic works… and what Atlantic is.”
MBW not too long ago questioned out loud whether or not Grainge’s appointment as Atlantic’s new CEO would usher in important modifications to the label’s A&R focus.
MBW founder Tim Ingham instructed: “May we see the technique of majors like Atlantic Music Group now tip additional in direction of breaking a better frequency of ephemeral streaming stars – and additional away from ‘pulling each lever’ to beginning enduring cultural tremendousstars?”
As Ingham identified, that end result is likely to be a “statistical inevitability”.
In 2022 WMG confirmed that its 5 largest celebrity acts contributed simply 5% of its recorded music revenues. A decade prior, that quantity was at 15%.
Let’s say Grainge’s Atlantic does start leaning extra on this course – i.e. extra artists being signed, however with rather less fixation on reaching megastardom.
May the label group’s current modifications point out an try and match its sources to this plan?
Warner Music Group CEO Robert Kyncl confirmed the brand new wave of layoffs at Atlantic in an inner word as we speak (September 19).
Within the word, obtained by MBW, Kyncl mentioned that WMG will “be unveiling a brand new dynamic construction” for Atlantic Music Group subsequent week and added that Elliot Grainge will likely be “making an announcement concerning the management workforce” forward of his official first day on the job on October 1.
Kyncl additionally confirmed that “as a part of this reorganization, we’ll sadly be saying goodbye to gifted folks”.
Elsewhere within the word, Warner’s CEO thanked the staff impacted by the layoffs, noting that they’ve “made an indelible mark on this firm and the careers of the extraordinary artists you’ve championed”.
Added Kyncl: “Phrases by no means lower it in these conditions however we’re eternally grateful for all of your contributions and achievements over time. We want you the easiest and know that you’ll proceed to do nice issues in your subsequent chapters.”
You’ll be able to learn Kyncl’s word in full under.
Hello everybody,
Since we introduced Julie could be stepping down, we’ve been thoughtfully engaged on tips on how to evolve Atlantic Music Group for the longer term. Subsequent week, we will likely be unveiling a brand new dynamic construction for the label group. Elliot begins as CEO of AMG on October 1.
As a part of this reorganization, we’ll sadly be saying goodbye to gifted folks. I do know you’ve got been ready to listen to the plan, and somewhat than perform modifications piecemeal, we determined to make these troublesome decisions in a single go.
At this time will likely be a tricky day, and by 9pm ET you’ll have heard in case your job is affected. Your leaders and the Folks workforce will offer you all of the essential particulars. We’re dedicated to serving to these impacted by way of this with the utmost respect, and supporting them with a runway throughout the transition.
I wish to acknowledge the onerous work, ardour, and creativity of everybody throughout Atlantic, 300, and Elektra. Particularly, I wish to thank the individuals who will likely be leaving us. You’ve made an indelible mark on this firm and the careers of the extraordinary artists you’ve championed. Phrases by no means lower it in these conditions however we’re eternally grateful for all of your contributions and achievements over time. We want you the easiest and know that you’ll proceed to do nice issues in your subsequent chapters.
WMG is remodeling swiftly this 12 months, in a fast-paced, fiercely aggressive business. As at all times, delivering excellent outcomes for artists and songwriters is our highest precedence in all our decisions.
As I discussed, you’ll hear extra about our plan for AMG subsequent week, with Elliot making an announcement concerning the management workforce. Within the meantime, now we have a lot unbelievable music available in the market, and a few excellent tasks on the way in which. Your continued help of teammates is wonderful, and your run-through-walls give attention to the music is extraordinary.
Thanks and take care,
RobertMusic Enterprise Worldwide
