Universal Music Group has announced a significant organizational restructuring aimed at generating $270 million in annual cost savings.

Universal Music Group has announced a significant organizational restructuring aimed at generating $270 million in annual cost savings. This plan includes layoffs and other operational efficiencies, with anticipated savings of €75 million in 2024, €125 million in 2025, and eventually €250 million by the end of 2026. The company aims to achieve a mid-20% EBITDA margin, necessitating these cost-saving measures due to increased SG&A costs.

The restructuring will incur $135 million in restructuring charges in 2024, with a potential for additional costs in subsequent phases. Additionally, UMG has implemented a new label group structure in the US, with Interscope Geffen A&M’s John Janick and Republic Records’ Monte Lipman overseeing multiple labels. Meanwhile, Warner Music Group announced its own restructuring, cutting around 600 roles to achieve $200 million in annual cost savings by September 2025. These moves signal a broader trend of major players in the music industry seeking to streamline operations and improve profitability.

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