Billionaire singer Taylor Swift's Universal Music Group plans to cut potentially hundreds of jobs this year, a company spokeswoman announced Friday.
The expected job cuts in the first quarter will be primarily in the recorded music division. Bloomberg News reported earlier in the day.
UMG would not comment on the exact number of jobs that could be cut, as the world's largest record label joins a wave of companies announcing job cuts this year.
As of 2022, the company has approximately 10,000 employees worldwide, as stated in its annual report for the same year.
The company's third-quarter revenue rose about 3.3% year-over-year, or about 10% at constant currency, helped by Swift's $1 billion in “Ella's Tour.”
In an internal memo seen by Reuters on Friday, UMG has focused on building its direct-to-consumer and e-commerce business over the past few years, Chief Executive Officer Lucien Grainge said.
“In 2024, we plan to further evolve our organizational structure and drive efficiencies in other areas of the business, while continuing to invest in A&R and artist development,” CEO Grainge added.
Grainge has touted UMG's efforts to improve the economics of streaming and promote responsible use of artificial intelligence.
Walt Disney Co.'s Pixar Animation Studios is also planning job cuts as it has completed production on some shows and currently has more staff than it needs, a person familiar with the situation told Reuters on Thursday. Told.
