(Reuters) - Universal Music Group (AS:UMG) will lay off some employees in 2024, a company spokesperson said on Friday, making the world's largest record label the latest to join a wave of layoffs this year.
Universal Music Group (UMG) may cut hundreds of jobs in the first quarter, mostly in its recorded music division, Bloomberg News reported earlier in the day.
UMG did not comment on the exact number of jobs it may be cutting.
As of 2022, the company recorded nearly 10,000 employees globally, as stated in that year's annual report
Walt Disney (NYSE:DIS)'s Pixar Animation Studios is also set to cut jobs as the studio has completed production on some shows and now has more staff than it needs, a source familiar with the situation told Reuters on Thursday.
UMG's focus has been on building its direct-to-customer and e-commerce operations in the past few years, chief executive Lucian Grainge said in an internal memo seen by Reuters on Friday.
"In 2024, as we continue....investments in A&R and artist development, we will further evolve our organizational structure to create efficiencies in other areas of the business," CEO Grainge added.
Grainge has been trumpeting UMG's attempts to improve the economics of streaming and promote the responsible use of artificial intelligence.
The company's third-quarter revenue, fueled by artist Taylor Swift's popularity, grew about 3.3% year-on-year and nearly 10% in constant currency.