Warner Music Group have placed their bets on music streaming being the next big thing, but that may see some employees left jobless.
Warner are offering to buyout employees who still work with physical music. Warner Music Group have reportedly offered payments to around 130 employees that still work with physical music.
Nielsen Music that Warner Music saw a steep decline of 19.6 percent in their CD sales for 2017. According to a report by Billboard Warner have sent ‘buyout letters’ to roughly 130 employees that deal with physical music from WEA – the global distribution, marketing, sales, and research branch.
It’s part of the major label’s larger plans in targeted reduction of their costs. Their total reduction hopes weren’t specified but they are expected to redirect the savings into their music streaming business which is booming (in case you didn’t know).
In a followup letter from WEA president Tony Harlow, he said: “WEA has always been at the forefront of evolution in the industry, and the current shift towards digital and streaming is no exception. As our business continues to evolve, and in order to maximise our artists’ impact globally, we are realigning resources within WEA.”
Fortunately it is a voluntary buyout so you can choose to stay if you wish, Warner are clearly just seeing that the future might not be bright for non-digital markets. Harlow continued that it was to give “valued colleagues in those areas of WEA the opportunity to make choices of their own.”