McHale’s Bar & Grill, a pub in midtown Manhattan, bills itself as “the best Irish bar in NYC.” It opens bright and early, at 10 a.m. on weekdays; it also happens to be right around the corner from Warner Music Group’s New York office. And on Thursday (Sept. 19), it was crammed full of Atlantic Music Group employees gathering to honor colleagues who had been laid off earlier that day. Several staffers clambered onto chairs to deliver spontaneous speeches about their time at the storied label.
McHale’s “is the only thing open during the day in that area,” says one employee who survived the cuts. At the impromptu gathering, “Lots of people who have been at Atlantic for 10- or 20-plus years said they loved being able to work with everyone. People were feeling supported since a lot of staff had been let go” — around 150 layoffs in total, according to WMG’s SEC filing.
Multiple sources stress that these departures, as well as the new regime being put in place by incoming Atlantic Music Group CEO Elliot Grainge, represent a seismic shift for Atlantic — a generational changing of the guard. A number of high-profile executives will be leaving the company, including Atlantic Music Group CEO Julie Greenwald, who co-led Atlantic for nearly 20 years; WMG’s CEO of recorded music Max Lousada, who had been at WMG for decades; 300 Elektra Entertainment chairman/CEO Kevin Liles; Atlantic general manager Paul Sinclair; and Atlantic co-president of Black music Michael Kyser, along with several department heads at both Atlantic and Elektra Records.
In the wake of the cuts, sources say the Elektra side of 300 Elektra Entertainment is down to fewer than 20 people; Warner announced that 3EE president Gregg Nadel will move to become co-chair of Warner Music Nashville, but did not mention a replacement. (Lousada and Liles will also not be replaced.) Atlantic made further cuts to its radio team, which now has fewer than 10 employees, having already been hit in previous waves of layoffs. The label slashed the publicity department to just a handful of people.
In addition, Atlantic and Elektra eliminated their touring teams, which help artists with promotion and production on the road. The creative departments of Atlantic and 300 — the staffers who help furnish artists with the content they need in a visual, social media-driven age — suffered losses as well. And the label cut some A&R executives.
All these vanished jobs are the latest sign that the definition of a major label is transforming rapidly. “The old advantages that a big label had in the past, radio and press and TV, those just aren’t as powerful as they were,” says Jonathan Daniel, a veteran artist manager. The industry is trying to “remodel what a major label is, because the old way is unsustainable at this point.”
That retooling process has led to a number of layoffs at both WMG and Universal Music Group over the last 18 months. (Cuts at Sony Music have been more moderate, sources have said, at least so far.) Executives in traditional departments, like radio and press, have been especially vulnerable. And companies have tried to reduce overlapping roles at frontline labels in favor of a shared central system of services.
Grainge, 30, has expressed disdain for the more sprawling, old-fashioned major label model in the past. In 2016, he founded the label 10K Projects, which has billed itself almost as an anti-major: Small and fleet-footed instead of large and lumbering, with a heavy focus on modern tools (digital marketing) at the expense of more old-fashioned ones (radio). He has had success with this approach, helping boost the early careers of artists like Ice Spice, XXXTentacion and Trippie Redd.
Several Atlantic staffers started to worry about the possibility of additional staff cuts in August, as soon as WMG unexpectedly announced that Grainge would replace Greenwald starting October 1. In the past, major leadership changes at labels have often been accompanied by layoffs. Roughly 20 years ago, for example, not long after Lyor Cohen took over as chairman/CEO of WMG, the company let go of around 1,000 employees.
That said, the record business was shrinking then, rather than growing. And WMG had already made three rounds of cuts in the past 19 months before last week’s layoffs.
Some executives believe that Atlantic Music Group, which has struggled to produce new breakout artists in the last two years, was still too big and too inefficient, even after the previous reductions in staff. It’s nearly impossible to turn a massive ship quickly, and speed is crucial in what WMG CEO Robert Kyncl recently called a “fast-paced, fiercely competitive industry.”
The company’s realignment is intended to strengthen the core Atlantic Music Group structure while also making it more flexible, so it can throw its full weight behind artists at Atlantic, 300 or Elektra at any given time, sources say. “Elliot is confident in the team he’s put in place and they’re all focused on moving the needle,” a source inside WMG tells Billboard. The mission, this person continues, is focusing on “artists, artist development, great music. With all the anxiety about changes, there is excitement about the future, too.”
But others wonder if deep cuts will ultimately affect a label’s ability to deliver on behalf of its artists. “They’re smart people; obviously there’s some sort of plan” with the restructure and the layoffs, says Motti Shulman, who exited his role as senior vp of rhythm promotion at 300 Elektra Entertainment in 2023. “But if you keep cutting the fat, at some point you dig into the muscle. I think they’ve gone beyond the fat.”
Earlier this month, WMG employees say Grainge spent time in the company’s Los Angeles and New York offices along with Zach Friedman and Tony Talamo, who are set to become chief operating officer and general manager of Atlantic Music Group, respectively. Several Atlantic staffers believed that the incoming leadership was evaluating their work and weighing who might be cut.
When layoffs began in New York last Thursday, a number of employees were told they were being let go in individual meetings with Greenwald — who had, in many cases, played an instrumental role in hiring them, sometimes decades ago. Some staffers started to call the artists they had collaborated with to notify them that they had been laid off. Others updated their LinkedIn profiles: #OpenToWork.
Historically, when labels cut a lot of employees — as Universal Music group did in 1999, and WMG did in 2004 — they often trim artist rosters as well. Specific employees often champion specific artists in the building; if those cheerleaders are gone, the label may in turn sever ties with the acts they cheered for. On top of that, remaining staff might be spread too thin to aid as many acts as it did previously. Many managers are still waiting to hear if their artists will be affected in the shakeup.
Todd Rubenstein, a veteran music lawyer, has been watching the steady drumbeat of layoffs across the major labels since the start of 2023. “I find it all sad,” he says. “Not just from the human level of people losing their jobs, but everyone was already complaining before about what labels were not doing for their artists. What happens now that a hundred people got let go?”
On Monday (Sept. 23), Atlantic started trying to answer that question. The company announced a “new era” and a series of promotions. Kyncl promised that the label will be “deeply passionate about artists.”
“We are committed to a single principle,” Grainge added. “Maximum impact.”
