You may have already heard that Atlantic Music Group laid off a collective staff today (September 19), many of whom were key members of the company’s previous era under Julie Greenwald.
The news follows recent confirmation that Greenwald — along with colleagues Max Lousada and Kevin Liles — is leaving Warner Music Group later this month.
Today’s departure of around 150 Atlantic staffers will understandably draw industry attention and chatter for days to come. (MBW obviously wishes those affected all the best. Though it will be no surprise to see some prosperous new indie music companies now emerge from ex-Atlantic/WMG execs… Greenwald, Lousada, and Liles included.)
If one zooms out for a second, though, a wider industry story comes into view: A new-look Atlantic, with a new strategy – and a new identity – about to take flight.
MBW has confirmed via sources that Atlantic has this month dropped around a dozen artists from its roster, in what’s perhaps the clearest signal yet that the label under incoming CEO Elliot Grainge won’t be the same as before.
“When Elliot takes over as CEO of this label group on October 1, it’s going to be a blank page – a new day for how Atlantic works… and what Atlantic is.”
This has shades of when Aaron Bay-Schuck arrived as CEO/Co-Chairman at WMG’s other main label, Warner Records, in 2018. In his first year in charge at WR, Bay-Schuck cut over 50% of the roster signed to the label by its previous management. He also signed 30 new acts, some of which – six years on – have fuelled a bumper 2024 for WR.
A source at Atlantic told MBW today: “It’s clear what’s going on here, both with these lay-offs and the roster being cut back.
“When Elliot takes over as CEO of this label group on October 1, it’s going to be a blank page – a new day for how Atlantic works… and what Atlantic is.”
MBW recently wondered out loud whether Grainge’s appointment as Atlantic’s new CEO would usher in significant changes to the label’s A&R focus.
MBW founder Tim Ingham suggested: “Could we see the strategy of majors like Atlantic Music Group now tip further towards breaking a higher frequency of ephemeral streaming stars – and further away from ‘pulling every lever’ to birth enduring cultural superstars?”
As Ingham pointed out, that outcome might be a “statistical inevitability”.
In 2022 WMG confirmed that its five biggest superstar acts contributed just 5% of its recorded music revenues. A decade prior, that number was at 15%.
Let’s say Grainge’s Atlantic does begin leaning more in this direction – i.e. more artists being signed, but with a little less fixation on achieving megastardom.
Could the label group’s recent changes indicate an attempt to match its resources to this plan?
Warner Music Group CEO Robert Kyncl confirmed the new wave of layoffs at Atlantic in an internal note today (September 19).
In the note, obtained by MBW, Kyncl said that WMG will “be unveiling a new dynamic structure” for Atlantic Music Group next week and added that Elliot Grainge will be “making an announcement about the leadership team” ahead of his official first day on the job on October 1.
Kyncl also confirmed that “as part of this reorganization, we will unfortunately be saying goodbye to talented people”.
Elsewhere in the note, Warner’s CEO thanked the employees impacted by the layoffs, noting that they have “made an indelible mark on this company and the careers of the extraordinary artists you’ve championed”.
Added Kyncl: “Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years. We wish you the very best and know that you will continue to do great things in your next chapters.”
You can read Kyncl’s note in full below.
Hi everyone,
Since we announced Julie would be stepping down, we’ve been thoughtfully working on how to evolve Atlantic Music Group for the future. Next week, we will be unveiling a new dynamic structure for the label group. Elliot begins as CEO of AMG on October 1.
As part of this reorganization, we will unfortunately be saying goodbye to talented people. I know you have been waiting to hear the plan, and rather than carry out changes piecemeal, we decided to make these difficult choices in one go.
Today will be a tough day, and by 9pm ET you will have heard if your job is affected. Your leaders and the People team will provide you with all the important details. We are committed to helping those impacted through this with the utmost respect, and supporting them with a runway during the transition.
I want to acknowledge the hard work, passion, and creativity of everyone across Atlantic, 300, and Elektra. In particular, I want to thank the people who will be leaving us. You’ve made an indelible mark on this company and the careers of the extraordinary artists you’ve championed. Words never cut it in these situations but we’re forever grateful for all your contributions and achievements over the years. We wish you the very best and know that you will continue to do great things in your next chapters.
WMG is transforming swiftly this year, in a fast-paced, fiercely competitive industry. As always, delivering outstanding results for artists and songwriters is our highest priority in all our choices.
As I mentioned, you will hear more about our plan for AMG next week, with Elliot making an announcement about the leadership team. In the meantime, we have so much incredible music in the market, and some outstanding projects on the way. Your continued support of teammates is amazing, and your run-through-walls focus on the music is extraordinary.
Thank you and take care,
RobertMusic Business Worldwide