You will have already heard that Atlantic Music Group laid off a collective employees at this time (September 19), lots of whom had been key members of the corporate’s earlier period underneath Julie Greenwald.
The information follows latest affirmation that Greenwald — together with colleagues Max Lousada and Kevin Liles — is leaving Warner Music Group later this month.
As we speak’s departure of round 150 Atlantic staffers will understandably draw business consideration and chatter for days to come back. (MBW clearly needs these affected all one of the best. Although it is going to be no shock to see some affluent new indie music corporations 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 underneath 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 principal label, Warner Data, in 2018. In his first 12 months in cost at WR, Bay-Schuck minimize 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 at this time: “It’s clear what’s occurring right here, each with these lay-offs and the roster being reduce.
“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 puzzled out loud whether or not Grainge’s appointment as Atlantic’s new CEO would usher in vital modifications to the label’s A&R focus.
MBW founder Tim Ingham advised: “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 start enduring cultural tremendousstars?”
As Ingham identified, that final result could 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 route – i.e. extra artists being signed, however with rather less fixation on attaining megastardom.
May the label group’s latest modifications point out an try and match its assets to this plan?
Warner Music Group CEO Robert Kyncl confirmed the brand new wave of layoffs at Atlantic in an inner be aware at this time (September 19).
Within the be aware, obtained by MBW, Kyncl stated that WMG will “be unveiling a brand new dynamic construction” for Atlantic Music Group subsequent week and added that Elliot Grainge shall be “making an announcement in regards to the management group” 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 proficient folks”.
Elsewhere within the be aware, 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 minimize it in these conditions however we’re without end grateful for all of your contributions and achievements through the years. We want you the perfect and know that you’ll proceed to do nice issues in your subsequent chapters.”
You’ll be able to learn Kyncl’s be aware in full beneath.
Hello everybody,
Since we introduced Julie can be stepping down, we’ve been thoughtfully engaged on the way to evolve Atlantic Music Group for the long run. Subsequent week, we shall 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 proficient folks. I do know you have got been ready to listen to the plan, and slightly than perform modifications piecemeal, we determined to make these tough selections in a single go.
As we speak shall be a tricky day, and by 9pm ET you should have heard in case your job is affected. Your leaders and the Folks group will offer you all of the essential particulars. We’re dedicated to serving to these impacted by this with the utmost respect, and supporting them with a runway in the course of the transition.
I wish to acknowledge the laborious work, ardour, and creativity of everybody throughout Atlantic, 300, and Elektra. Specifically, I wish to thank the individuals who shall 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 minimize it in these conditions however we’re without end grateful for all of your contributions and achievements through the years. We want you the perfect and know that you’ll proceed to do nice issues in your subsequent chapters.
WMG is reworking swiftly this 12 months, in a fast-paced, fiercely aggressive business. As all the time, delivering excellent outcomes for artists and songwriters is our highest precedence in all our selections.
As I discussed, you’ll hear extra about our plan for AMG subsequent week, with Elliot making an announcement in regards to the management group. Within the meantime, we’ve got a lot unbelievable music available in the market, and a few excellent tasks on the way in which. Your continued assist of teammates is wonderful, and your run-through-walls deal with the music is extraordinary.
Thanks and take care,
RobertMusic Enterprise Worldwide
